The US will impose 25 percent tariffs on Mexico and Canada, and 10 percent on China, the Trump White House said. The purpose of tariffs is to protect domestic manufacturers and their work forces. What American manufacturers and workers are being protected by Trump’s tariffs? So much of US manufacturing is located offshore, what purpose are the tariffs serving?

The “tariffs” in reality are taxes imposed on imports of foreign produced goods, including the offshored production of US corporations of goods and services sold in the US. If the tariffs are paid by the consumer rather than by the US corporations that offshore their production for the American market, the effect will be to reduce the quantity demanded because of the higher price. How much this harms the offshore producers depends on whether their products are price elastic or inelastic. Some are one and some are the other.

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