A persistent reduction in the trade deficit due to tariffs is unlikely in the long run if the levying country's currency appreciates, as this appreciation drives down the relative price of imports.

Authors

• Person: Not available Organization: Budget Lab at Yale
  Tracking the Economic Effects of Tariffs | The Budget Lab at Yale

Sources

• Tracking the Economic Effects of Tariffs | The Budget Lab at Yale budgetlab.yale.edu Budget Lab at Yale via serper

Referenced by nodes (3)

• tariff concept
• trade deficit concept
• currency concept