The US in Brief: Lashing out with levies
The Economist
February 23, 2026
AI-Generated Deep Dive Summary
The US government has increasingly turned to tariffs as a political tool under President Trump’s second term, imposing levies on imported goods to protect domestic industries and retaliate against trading partners. These actions have sparked debates over their effectiveness in achieving fair trade outcomes versus their potential harm to businesses and consumers.
The use of tariffs has significantly impacted global trade dynamics, particularly in US-China relations. While intended to level the playing field for American manufacturers, these measures have led to higher costs for import-dependent companies and consumers. Additionally, retaliatory tariffs from other countries have complicated international trade and strained diplomatic ties.
Domestically, businesses face challenges such as reduced access to global markets, potential job losses in export sectors, and increased production costs. However, some industries, particularly those in manufacturing, have seen benefits from the protectionist measures, which aim to reduce reliance on foreign goods.
The broader implications of these tariff policies extend to inflationary pressures and higher prices for everyday items. Critics argue that while tariffs may shield certain sectors, they undermine US competitiveness globally and risk long-term economic growth.
For businesses, navigating this complex trade landscape requires strategic planning to mitigate risks and adapt to changing regulations. The outcome of ongoing negotiations and future policy decisions will shape the future of international trade and domestic industries.
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Originally published on The Economist on 2/23/2026