Impact of tariffs on domestic US economy and risk mitigants

In light of the recent tariff announcements, the podcast extensively discusses tariffs' multifaceted economic impacts, exploring their historical context, macroeconomic consequences on GDP and productivity, effects on employment and inflation, and varying sectoral outcomes, particularly in manufacturing, agriculture, and consumer goods, based on several research reports. 

A significant emphasis is placed on retaliation and the potential for trade wars, drawing lessons from the historical Smoot-Hawley Tariff Act. 

The analysis differentiates between short-term and long-term consequences, revealing a broad consensus in academic literature regarding the generally negative effects of widespread tariffs on economic growth and consumer welfare while acknowledging some debates around targeted interventions. 

Ultimately, the sources synthesize findings to conclude that tariffs often fail to achieve their intended benefits, leading to detrimental outcomes for the domestic economy.

There is also a discussion on mitigation steps that CFOs and small business owners can take to prepare for and reduce the impact of tariffs.