Impact of Tariffs on the Supply Chain

There is much talk on the campaign trail from the two leading candidates about imposing tariffs on imported goods. Former President Trump wants to impose a 10% tax on all imports. President Biden’s administration is considering imposing tariffs selectively, the so-called “small yard, high fence” approach. The impact of a tariff is not fully predictable and does not follow a straight line. While it may give a small boost to the country imposing tariffs in the short term in a variety of ways, it could have unintended consequences in the long run.