Tariff

1. Need to be announced
2. Need to be subject to public comment
3. Are subject to waiting periods
4. Can be activated after all the above are complete

• Overall this can take many months
• At the initial onset, makes it hard to tell if tariffs will actually be implemented or negotiated beforehand

Impact of Tariffs

• Tariffs create a domestic price umbrella (import price + Tariff)
• Domestic suppliers now charge the umbrella price (import price tariff)
• Impact on the economy is therefore the totality of domestic consumption (since all prices increased

• Global tariff levels have declined over the last 30 years to 2% (2017) from 30% (1980s)