Tariff-jumping doesn’t prove that tariffs work

From thehill.com

U.S. Trade Representative Jamieson Greer recently argued that economists underestimate one of tariffs’ biggest benefits: foreign firms might relocate production to avoid them. But tariff-jumping is a mechanism, not a result. And showing that tariffs change corporate behavior is not the same thing as showing that they make Americans better off. A firm facing a new tariff has several options. It can absorb the cost. It can pass the cost on to consumers. It can redirect its exports elsewhere. Or it can relocate production to the protected market, which economists call tariff-jumping. Greer focuses on this last ... (full story)