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Steeling the U.S. Economy for the Impacts of Tariffs

Michael Sposi () and Kelvinder Virdi

Economic Letter, 2018, vol. 13, issue 5, 4 pages

Abstract: Proposed steel and aluminum tariffs would likely trim a quarter percent from the U.S. gross domestic product over the long run. U.S. metals industries would likely expand, while heavy industries, such as machines and equipment, would probably contract along with aggregate capital formation. The main risks lie in the potential for retaliation by trading partners and the possibility of a trade war.

Date: 2018
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