Trade Wars Sink All Ships

Economists say that international trade wars make participating countries poorer, not richer. Tariffs are simply federal taxes on incoming goods. In most cases the importer has to absorb the extra cost or, more likely, pass it on to the consumer as an inflationary price increase. It is considered a regressive tax in that lower income people spend more of their money, while higher income people save or invest a considerable portion. Targeted tariffs make sense in some cases, but free trade results in the lowest costs to the consumer.