New US tariffs have varying impact on prices – Canadian research
Over the long term, tariffs have “modest impact” on aggregate prices and output
Economists at the Bank of Canada have attempted to quantify the impact new trade tariffs will have, concluding they are unlikely to impact prices in the long term.
In their paper, Karyne Charbonneau and Anthony Landry use trade elasticity estimates to analyse the long-term impacts of the Trump administration’s tariffs, such as those on steel and aluminium imports. The authors also analyse the additional tariffs imposed between China and the US.
“Our results suggest that the newly imposed and
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