Tariff Q&A

An excerpt from our Fourth Quarter 2024 Investment Brief:

Tariffs are usually intended to protect domestic producers by placing a tax on imports, thus raising their price and reducing import demand. In effect, tariffs impose a higher cost basis on the domestic economy relative to the rest of the world. In addition to an immediate impact on prices, longer-term harms include economic distortions and slower growth. The following Q&A addresses selected issues raised by tariffs.