The Complexity of Tariffs

Tariffs are viewed as a potential tool for enhancing American economic resiliency, yet their complexity often leads to confusion and frustration among investors. Different tariffs, such as those on steel and aluminum, impact various countries diversely, complicating trade dynamics. Although tariffs can theoretically be adjusted with precision, in practice, they are frequently applied indiscriminately, as seen during the Trump administration's approach. The overarching pattern reveals that threats of tariffs can lead to concessions from other countries, which were not always followed by actual implementation, resulting in an unpredictable trading environment.