Tariffs provide net economic benefits to a nation's economy
Economic literature and empirical evidence largely refute the notion that tariffs provide net economic benefits, demonstrating instead that trade barriers and tariffs frequently induce consumer welfare losses, supply chain disruptions, and reduced overall economic efficiency.
The retrieved papers overwhelmingly point out the negative consequences of tariffs and trade restrictions on consumer welfare, global value chains, and economic growth, with only isolated theoretical models suggesting conditional welfare gains under strict duopoly assumptions.
Junlong Chen, Xin Xie, Chao Sun, Li Lin, Jiali Liu. Optimal trade policy and welfare in a differentiated duopoly. 2022. https://doi.org/10.1002/mde.3579
Paper [2] finds that under certain strategic duopoly settings, increasing tariffs can improve home social welfare.
Kyle Handley, N. Limão. Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States. 2017. https://doi.org/10.1257/AER.20141419
Paper [0] shows that reducing trade policy uncertainty yields economic gains equivalent to a permanent tariff decrease.
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Emily J. Blanchard, C. Bown, Robert C. Johnson. Global Value Chains and Trade Policy. 2025. https://doi.org/10.1093/restud/rdaf017
Paper [1] demonstrates that decoupling and protective tariffs can increase optimal tariff burdens and disrupt global value chains.
Vo LH, Le TH. COVID-19 test-kit trade and trade policy: Implications for developing countries.. 2022. https://doi.org/10.1111/twec.13276
Paper [3] indicates that import tariffs and trade barriers result in severe consumer welfare losses, particularly during shortages.
Sun X, Mi Z, Cheng L, Coffman D, Liu Y. The carbon border adjustment mechanism is inefficient in addressing carbon leakage and results in unfair welfare losses.. 2024. https://doi.org/10.1016/j.fmre.2023.02.026
Paper [5] reports that unilateral trade policies and border adjustments create unfair welfare losses and negative global economic impacts.
McCann P, Ortega-Argilés R, Thissen M, Hsu MW. Mercantilist and protectionist shocks on innovation, growth, and economic policy in European regions.. 2026. https://doi.org/10.1007/s00191-025-00921-w
Paper [10] assesses protectionism and tariffs as negative trade shocks that complicate regional growth and innovation.
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