Why Haven’t Trump’s Tariffs Had a Bigger Impact?
The New York Times••business
Key Points:
- President Trump increased U.S. import tariffs last year to levels not seen in a century, leading to higher prices and challenges for businesses reliant on imported goods.
- Despite initial predictions, the economic impact has been less severe because the actual tariff rates paid by importers were significantly lower than the announced rates.
- A working paper by economists from Harvard and the University of Chicago found that exemptions, lowered rates for some goods, and rule evasion contributed to an effective tariff rate of 14.1% by September, about half the announced 27.4% nominal rate.
- The average trade-weighted tariff rate peaked at 32.8% in April but had decreased by September, explaining why the tariffs' effects were less pronounced
