What Biden's tariffs on Chinese imports may mean for American jobs, the economy and inflation

Countries often impose tariffs to protect domestic industries, but research shows that the economic effects are often disappointing. The Biden administration recently announced new tariffs on Chinese exports deemed crucial to national security, following in the footsteps of the previous administration. Economists believe that the $18 billion in tariffs will have a minimal initial impact on GDP, inflation, and monetary policy, but the long-term consequences are uncertain. Tariffs have historically led to higher prices for consumers and job losses in industries affected by the taxes. Critics argue that tariffs hinder specialization and disrupt the movement of goods and services. While the trade war with China may have had political benefits, economists suggest that its economic effects were at best negligible. The Covid-19 pandemic further complicated the picture by distorting supply chains and altering trade patterns.