Tariffs in International Trade: Assessing Their Economic Costs and Strategic Impact

Abstract

Trade tariffs have become a common feature of global trade in response to dumping, trade imbalances, and efforts to protect emerging industries. However, they have also had adverse effects on the global economy, including trade wars, international tensions, and inflation, among others. This paper critically examines the costs and impacts of tariffs on the global economy, using a qualitative approach and referencing relevant published literature. It finds that the benefits of tariffs are generally offset or surpassed by their negative effects, except when they are imposed appropriately. Therefore, it proposes a six-point framework to guide the proper implementation of tariffs.

Keywords: Tariffs, Global trade, Infant Industries, Protectionism, Trade wars

DOI: 10.7176/JPID/64-08

Publication date: November 30^th 2025