Follow Up To: “Trump’s Tariffs, A Feeling of Deja Vu”
This morning, the New York Federal Reserve’s Blog, Liberty Street Economics, posted an interesting article entitled:
Do Import Tariffs Protect U.S. Firms?
https://libertystreeteconomics.newyorkfed.org/2024/12/do-import-tariffs-protect-u-s-firms/
Whereas my article sought to draw historical parallels between the Smoot Hawley Tariffs of the 1930s and Trump’s proposed new Tariffs, the authors note a correlation between the Tariff’s announcement and a decline in the price of the “protected” company shares. A company’s share price, after all, is a good indicator of future revenue and profits, so they see Tariffs as counterproductive.
If the President-elect proceeds with instituting a series of Tariffs (something that is purely speculative at this point), I believe that many economists will oppose those measures. In the end, Tariffs may not be the panacea that many envision.
You’ll find the Liberty Street article to be a worthwhile read.
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