{"title":"The Deadweight Losses from “Liberation Day”","authors":"Jon R. Neill","doi":"10.1007/s11293-025-09836-0","DOIUrl":null,"url":null,"abstract":"<div><p>President Trump levied across the board tariffs of 10% and threatened some countries with rates as high as 145%. A number of estimates of the revenues that could be expected from the tariffs announced on April 2, 2025, “Liberation Day,” were made. However, no one has considered the loss of consumer surplus that may result from the rates that the President has or will impose. This paper presents estimates of that annual loss along with estimates of the associated deadweight loss using data from the United States Bureau of Economic Analysis. Estimates of the revenues from these tariffs made herein are in line with estimates made by the Administration. Of course, the tariff revenues correspond to a loss for consumers. The analysis presented here shows that this loss of consumer surplus per United States household could be over $5,000 annually, with the deadweight loss over $3,000. In short, these tariffs can be expected to place a huge burden on households in the United States, particularly low-income households.</p></div>","PeriodicalId":46061,"journal":{"name":"ATLANTIC ECONOMIC JOURNAL","volume":"53 4","pages":"273 - 284"},"PeriodicalIF":0.4000,"publicationDate":"2025-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ATLANTIC ECONOMIC JOURNAL","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s11293-025-09836-0","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
President Trump levied across the board tariffs of 10% and threatened some countries with rates as high as 145%. A number of estimates of the revenues that could be expected from the tariffs announced on April 2, 2025, “Liberation Day,” were made. However, no one has considered the loss of consumer surplus that may result from the rates that the President has or will impose. This paper presents estimates of that annual loss along with estimates of the associated deadweight loss using data from the United States Bureau of Economic Analysis. Estimates of the revenues from these tariffs made herein are in line with estimates made by the Administration. Of course, the tariff revenues correspond to a loss for consumers. The analysis presented here shows that this loss of consumer surplus per United States household could be over $5,000 annually, with the deadweight loss over $3,000. In short, these tariffs can be expected to place a huge burden on households in the United States, particularly low-income households.
期刊介绍：
The Atlantic Economic Journal (AEJ) has an international reputation for excellent articles in all interest areas, without regard to fields or methodological preferences. Founded in 1973 by the International Atlantic Economic Society, a need was identified for increased communication among scholars from different countries. For over 30 years, the AEJ has continuously sought articles that traced some of the most critical economic changes and developments to occur on the global level. The journal''s goal is to facilitate and synthesize economic research across nations to encourage cross-fertilization of ideas and scholarly research. Contributors include some of the world''s most respected economists and financial specialists, including Nobel laureates and leading government officials. AEJ welcomes both theoretical and empirical articles, as well as public policy papers. All manuscripts are submitted to a double-blind peer review process. In addition to formal publication of full-length articles, the AEJ provides an opportunity for less formal communication through its Anthology section. A small point may not be worthy of a full-length, formal paper but is important enough to warrant dissemination to other researchers. Research in progress may be of interest to other scholars in the field. A research approach ending in negative results needs to be shared to save others similar pitfalls. The Anthology section has been established to facilitate these forms of communication. Anthologies provide a means by which short manuscripts of less than 500 words can quickly appear in the AEJ. All submissions are formally reviewed by the Board of Editors. Officially cited as: Atl Econ J
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