Decoding the economics of Trump’s tariffs

In Focus by The Hindu · Feb 6, 2025 · 33m

US President Donald Trump has often said that ‘tariff’ is his favourite word. Within weeks of taking office, he imposed 25% tariffs on all imports from America’s two biggest trading partners, Mexico and Canada, and 10% tariffs on goods from China. Subsequently, he paused the tariffs for 30 days, after Mexico and Canada promised to take certain measures to curb illegal migration and cross-border fentanyl smuggling.

Given his repeated statements that he is looking at tariffs as a source of revenue it seems like he is viewing tariffs as a permanent feature rather than as a temporary negotiating…