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When Are Tariffs Optimal?, No. 25-21

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When Are Tariffs Optimal?, No. 25-21

DATE: May 2025

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ABSTRACT: When is a good time to use tariffs? Never, generally speaking.Taris, or taxes levied on imported goods, have been a contentious policy tool throughout history. Standard economic theory consistently demonstrates that taris alter prices, alter production and consumption patterns, distort markets, reduce overall welfare and trigger costly trade conflicts. Despite this broad consensus among economists, policymakers frequently resort to taris to address various economic and political objectives.

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Lubik, Thomas A. "When Are Tariffs Optimal?, No. 25-21," Economic Brief (May 2025). https://fraser.stlouisfed.org/title/6034/item/686098, accessed on December 9, 2025.

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