Pal, Parthapratim and  Ray, Partha  <br/><br/>
The tariff tantrum and its justification: Dubious foundation of questionable economics 

 - Economic & Political Weekly   
 - 60(17), Apr 26, 2025: p.19-22    
<br/><br/> The United States authorities try to justify the imposition of tariffs as a response to persistent US trade deficits and the perceived decline of domestic manufacturing, arguing that trade imbalances undermine advanced manufacturing capacity and critical supply chains. However, this argument overlooks several other factors that influence the US trade deficit and domestic economy. The US formula for calculating tariffs is particularly problematic, relying on questionable parameter values for tariff pass-through and price elasticity. Applying high tariffs on all imports lacks theoretical support and risks major disruptions to global supply chains, raising costs for US producers and consumers.- Reproduced <br/><br/>https://www.epw.in/journal/2025/17/commentary/tariff-tantrum-and-its-justification.html<br/>