Tariff Panel

The Hoover Economic Policy Working group hosted a panel discussion on tariffs, with Michael Bordo, Mickey Levy, Steve Davis, Stephen Redding, and Andrew Grotto. Event page here. Video here

I thought the discussion was excellent. Michael covered the sorry history of tariffs as attempts to “bring back” or grow “infant” industries, Mickey covered more recent and financial events, Steve Davis emphasized the effects of tariff uncertainty and also financial uncertainty, Stephen reminded us of basic tariff mechanics, and Andrew covered the strategic aspect.

I particuarly recommend Andrew’s presentation at the end, especially for economists like me for whom free trade is well understood. Andrew points out that there is a foreign policy aspect that we ignore. After all, aircraft carriers are expensive, but we economists don’t necessarily line up to write op eds against aircraft carriers. Our job is to point out economic costs. Andrew points to a “coercive” diplomacy use for tariffs. Threaten a tariff to get another country to do what you want in some other dimension. It’s better than sailing an aircraft carrier up the St. Lawrence and threatening to bomb Ottawa. Theory aside, though, the current tariffs seem to be singularly counterproductive in this dimension. Still, it is an angle most economists don’t think about often enough.

More of the EPWG events here .