Tim Taylor, the Conversible Economist, describes the impact of the 2009 tariff on tires from China:
When tariff policy is laid out in this way, it looks literally insane. No one would ever advocate a policy of imposing a tax worth $1.1 billion on all U.S. purchasers of tires, with $48 million to go to actual workers who produce tires, $250 million to go to U.S tire companies, and $800 million of the revenue from that tax to go to foreign tire producers.
Based on a recent Policy Brief by Gary Clyde Hufbauer and Sean Lowry of the Peterson Institute: US Tire Tariffs: Saving Few Jobs at High Cost.
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