Understanding Trump's Tariff Impact and Future Trade Tensions

Research on the 2018-19 U.S.-China trade war suggests that President-elect Trump's proposed tariffs on imports from Canada, Mexico, and China may not achieve their intended economic benefits. Previous tariffs did not reduce the cost of Chinese imports, led to higher prices for U.S. consumers, and did not bring back manufacturing jobs to the U.S. Additionally, sectors affected by retaliatory tariffs suffered. Companies' strategies like friend-shoring may not effectively counteract new trade barriers, potentially reshaping the U.S. economy significantly.