What better way to understand concepts big and small than through data visualizations? In this blog series, we bring you a collection of visuals on events, academic theories, and insights around economics and transportation, especially — but not exclusively — from academia and news organizations. Join us to explore and engage with interesting and insightful data visualizations from creators around the world.
This week’s Data Vizdom sheds light on the unintended consequences of tariffs — a tax imposed on imports of foreign-made goods — on the home country’s economy and the ongoing trade war between the US and China.
While tariffs have fallen out of favor in high-income countries due to their impact on trade, prices of goods, and the risk of spiraling foreign retaliation, lower-income countries still use them for the short-term benefits they generate as a direct source of income. However, studies have shown that tariffs have negative long-term impacts on output and productivity.
Tariffs are ineffective as well as counterproductive – The Economist (January 15, 2019)
The direct impact of tariffs on output is overshadowed by the uncertainty they create when trading partners engage in retaliatory tariffs, leading to trade wars.
Uncertainty Shock Dwarfs the Direct Impact of Tariffs – Bloomberg (August 19, 2019)
While in theory, the cost of tariffs is borne by the importer, in practice, these costs are passed down to consumers. As a proportion of a consumer’s income, tariffs hit the poorest the hardest.
How Much Will the Trade War Cost You by the End of the Year? – The New York Times (September 1, 2019)
The US and China have been engaged in a trade war since Trump imposed tariffs in January 2018. What started as an effort to address the trade deficit between two of the world’s largest economies has continued under Biden, who has also accused China of unfairly favouring their domestic industries.
US-China Trade War Tariffs: An Up-to-Date Chart – Peterson Institute for International Economics (April 6, 2023)
While tensions are currently flaring up again with the US and EU imposing tariffs on Chinese EVs, overall US tariffs remain low.
What Are Tariffs? – Council on Foreign Relations (June 21, 2024)
Help us make this series even better! We would love to hear about sources we should follow to discover interesting projects and visualizations. Write to Bilal Siddika on LinkedIn or via email.