It is possible in theory for the US to gain as a whole through what is known as a “terms of trade manipulation effect.” But in the applied case of this rise in tariffs, I find the chances that this makes American consumers better off to be quite unlikely.
Ricardo Reis
Ricardo Reis30.7.2025
The biggest loser---by far---from raising tariffs on EU exports to the US from 1.2% (last year) to 15.1% (new deal) is the American consumer. A win for the US? Do you also think that the US would win if it introduced a federal sales tax on some goods?
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