- Higher US import tariffs may have little impact on consumers, as exchange rate shifts and competitive pricing among exporters could offset tariff-related price increases.
- The muted impact of tariffs on retail prices might encourage the US government to take a tougher stance on import tariffs, rather than merely using it as a negotiation tool.
- The positive link between higher tariffs and a stronger USD suggests limited benefits for US manufacturing but significant harm to exporting countries and Asian currencies.
