But many economists argue that the protective benefits of tariffs have been outweighed by negative effects. Some might argue that the negative effects of tariffs are warranted if they protect the manufacturing sector, but the findings suggest the tariffs increased producer prices without raising manufacturing employment or output. So far, tariffs imposed to protect the American metal and washing machine industries have had a mixed effect. In the steel industry, for instance, the protection against imports helped prompt United States producers to invest billions of dollars in new facilities that they hope will be more efficient. In December, United States Steel said it was going to indefinitely idle most of a mill near Detroit.

Source: New York Times January 03, 2020 19:45 UTC