Part 5/11:
Tariffs are often proposed as a remedy to reduce the trade deficit and bring manufacturing jobs back to the United States. However, economic logic and historical evidence suggest that tariffs do little more than distort trade patterns rather than address underlying economic shifts.
If tariffs are imposed—for example, targeting China—they will likely lead to a re-sourcing of imports from other countries. Fewer imports will come from China, but imports from other nations will fill the gap, merely shifting trade rather than reducing it overall. This disruption can have unintended negative consequences, including higher prices for consumers and inefficiencies in global supply chains.