Tariffs versus subsidies: protection versus industrial policy

Stephanie Rickard

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In 2025, the United States raised tariffs to rates not seen for more than a century. These tariffs were not part of a carefully designed industrial strategy. Instead, the second Trump administration distanced itself from existing industrial policy initiatives and indicated a desire to roll back government-funded subsidies for businesses. This article examines the rationale behind the United States’ pivot from subsidies to tariffs and explores implications for trade partners and multilateral institutions.

Keywords: tariffs; industrial policy; trade; subsidies (search for similar items in EconPapers)
JEL-codes: J01 J1 R14 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2025-08-11
New Economics Papers: this item is included in nep-his
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Published in World Trade Review, 11, August, 2025. ISSN: 1474-7456

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:128326

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