Tariffs, Capital Heterogeneity, & the Real Costs of Intervention: The Aluminum Example

Tariffs, Capital Heterogeneity, & the Real Costs of Intervention: The Aluminum Example

While many are concerned with the current unlawful tariff wars instituted by President Donald Trump, many are pointing out how tariffs can be used to tank an economy by weakening production. Richard Martin has an example of the aluminum industry and tariffs at Mises. When a government imposes tariffs, the stated intention is simple: protect domestic industry, support local jobs, and strengthen national economic resilience. Yet, from the perspect…