On the campaign trail, Donald Trump has promised to increase tariffs on imports from China by 60 percentage points and on all other imports by 10 to 20 percentage points. Wendy Edelberg and Maurice Obstfeld highlight the evidence that tariffs lead to persistently higher prices for customers and warn that small- and medium-sized businesses will face heavy costs.
“Prices will rise, production will be depressed, and employment will likely fall, particularly in sectors exposed to higher input prices or foreign retaliation.”
– Wendy Edelberg and Maurice Obstfeld
More research and commentary
Is the Middle East on the verge of all-out war? On the Plain English podcast with Derek Thompson, Natan Sachs discusses the major entities engaged in conflict in the region, Gaza’s humanitarian crisis, U.S. strategy and the levers that President Biden has in his final weeks in office, and other key developments.
How the world is tackling AI safety. The United States has announced that it will host a global AI safety summit in November with the goal of kick-starting technical collaboration among AI safety institutes ahead of the Paris AI Action Summit in 2025. Joshua P. Meltzer and Paul Triolo explain where progress stands on international AI cooperation and the barriers ahead.
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