Model Shows that Universal 10% Tariff Would Improve Incomes, Output and Jobs (Updated)

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Note: This version is updated with results for additional tax revenue and a retaliation scenario. Key Points CPA modeled former President Trump’s recent proposal regarding a 10% universal tariff. Our simulation finds that the tariff change would increase economic growth and create opportunity for Americans through increasing incomes and job creation. Under the proposal, real…

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Pro-Growth Tariffs: Modified Economic Model Shows Domestic Growth (Updated)

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Economic models used to forecast the impact of international trade agreements have an in-built bias to favor free trade. This has led these models to underestimate repeatedly the damage done to U.S. manufacturing industry by trade agreements, dating back to NAFTA. The bias or rigidity in these models can be corrected by modifying some of…