Commentary

Who pays President Trump’s Tariffs?

By Steven Keshishoghli | 05 June 2019

At the end of May President Trump announced that the United States will impose a 5 percent tariff on all goods imported from Mexico starting on 10 June 2019. The rational for the tariffs is to incentivise Mexico to control illegal immigration coming through the United States southern border. 

Most commentators state that the ultimate payer of these taxes is US consumers, especially the low income supporters of President Trump. It seems paradoxical then that he would pursue these policies with the upcoming 2020 election. A microeconomic analysis of import tariffs confirm this view.

Read the full article by Steven Keshishoghli