Do tariffs work?

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This week, President Trump was inaugurated for his second term and announced plans to impose significant tariffs on imports. But what exactly are tariffs, and how do they work?

In this episode, we dive into the economic consequences of tariffs, why governments use them, and whether they actually achieve their intended goals.

Joining Paul to unpack these questions is Peter Levell, Deputy Research Director at the Institute for Fiscal Studies (IFS) and an expert on trade economics.

Zooming In: discussion questions

Every week, we share a set of questions designed for A Level economics students to discuss, written by teacher Will Haines.

1. What are tariff and non-tariff barriers to trade?

2. Explain how the theory of comparative advantage influences specialisation, economies of scale and competition.

3. To what extent do the potential benefits of lower consumer prices from international trade outweigh the potential costs of domestic job losses? Use a tariff diagram to support your response.