Tag Archives: tariffs

Assuming all countries have the same rates, what is the optimal average tariff? Is it 0%, or does a small nominal rate produce better outcomes?

My answer on Quora: I do not believe there is such a thing as a common optimal tariff rate across countries. I also do not believe that a world with zero tariffs will produce better outcomes than having a range of country- and industry-specific tariffs (from zero to above zero). This is because countries differ […]