It’s pretty well accepted that tariffs lead to overall worse outcomes for all parties involved. Some reasons: - Someone mentioned price elasticity below. The

It’s pretty well accepted that tariffs lead to overall worse outcomes for all parties involved. Some reasons: - Someone mentioned price elasticity below. The demand for the product might actually drop because of higher prices from local producers - Local producers become less competitive, especially if the imported item was not cheaper because of lower labor cost but because of innovation - The downstream high-value supply chain becomes less competitive if tariffs are applied to an intermediate/low-value product There is a narrow space in which tariffs might work and that is when they’re temporarily used to shelter local producers from outside competition with the hope that they can quickly build capability and scale of their global peers.