We live in a world of freely floating currencies. In such an environment, tariffs are like trying to nail a jelly to the wall. Tariffs reduce imports and thus

We live in a world of freely floating currencies. In such an environment, tariffs are like trying to nail a jelly to the wall. Tariffs reduce imports and thus lead to a higher exchange rate for the currency. Nevertheless, tariffs lead to higher prices in the supply chain. Expensive currency and high procurement costs endanger the export industry in the medium term. The introduction of tariffs is the poor man's monetary policy. Nations that understand this find sharp weapons against it.