Industrial port at dawn at the Port of Casablanca, Morocco.

Research from the Federal Reserve Bank of New York has warned higher import tariffs imposed by the US could hit exports and have no effect on the country’s large trade deficit.

In a post on the Liberty Street Economics Blog, Mary Amiti, Mi Dai, Robert C Feenstra and John Romalis, argued higher tariffs would reduce both imports and exports, with US exporters affected by retaliatory tariffs and higher domestic costs.
This echoes research from the OECD, suggesting if average import tariffs reach levels last seen in 1990, it could lower global growth. The loss in real GDP per capita by 2060 could be 18% for the Briics (Brazil, Russia, India, Indonesia, China, South Africa), and 4.5% for the euro area.