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Here's how high tariff rates would have to rise to bring manufacturing back to its glory days. Even Trump would be shocked.
Tariff rates will probably fall, given recent arguments before the Supreme Court questioning the legality of country-by-country tariffs imposed by the Trump administration. So it was interesting to read an analysis on how high tariffs would have to be to fully eliminate the trade deficit for manufacturers. Economists at UBS pointed to an analysis by the center-right American Enterprise Institute, which calculated that tariffs would have to be set at 42.5% to level out manufacturing imports and exports. That's considerably higher than the Yale Budget Lab's estimate that the effective tariff rates are currently 18%. ... (full story)