US EditionWTO Blog | In a world of trade tensions, what do tariffs really do?
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WTO Blog | In a world of trade tensions, what do tariffs really do?
Trade policy tensions are escalating fast. In recent months, several large economies have announced or implemented sweeping new tariffs, reviving a policy tool that many thought to have been largely relegated to the past. These developments have sparked a flurry of political commentary — but behind the headlines, there exists a body of economic research that helps to make sense of what tariffs actually do.
In fact, tariffs, which some countries see as an instrument of economic empowerment, often fail to serve their purpose, says Ralph Ossa, chief economist at the WTO
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