Will the Democrats pause tariffs if they win the next election and return to power? Here's what a Wharton professor says
University of Pennsylvania professor Joao Gomes suggests tariffs are likely here to stay, becoming "addictive" for governments due to the revenue they generate. Despite political criticism, Gomes anticipates both Democrats and Republicans will find tariffs appealing. While rates may decrease, a full rollback is unlikely, with potential trade deals offering some optimism.
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Professor Joao Gomes Says Tariffs Are Here to Stay
What's the Future of US Tariff Policies?
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While political rhetoric on tariffs has been heated, with Democrats and at times Republicans criticizing at times US president Donald Trump's harsh tariffs, a professor pointed out that eventually both parties will want tariffs and it will continue to stay, as per a report.Professor of the University of Pennsylvania 's Wharton Business School , Joao Gomes highlighted, "I think the end game is some tariffs are here to stay," adding, "I think they are addictive, they're also addictive for every country in the world," quoted Fortune.Gomes mentioned in the Wharton Business Daily that, "The truth is governments need revenues and once you see the amount of revenue the tariffs bring, I think Democrats will be addicted to them as Republicans—or are as likely to be," as quoted in the report.ALSO READ: Japan, the U.S.'s biggest creditor, faces a Greece-like fiscal crisis as borrowing costs hit a 20-year high; here's how it ended up there While most analysts anticipate tariff rates will slowly come down, Gomes is doubtful that there will be a full rollback and he predicts that tariffs, in some form, will stay, even if the party changes next election.Gomes emphasized that, "So the tariffs are here to stay in some form: 5%, 10% across the board? Targeted? I don't know. But tariffs are definitely not a thing of the past, not a thing of the moment," as quoted by Fortune.The professor shared that, "I'm fairly comfortable that we're gonna be here two, three years out and we'll have a different regime where there's gonna be more, higher tariffs around the world," as quoted in the report.Meanwhile, he also pointed out that the worst is over as countries are trying to seek a deal with the United States. He said, "There'll be some nice trade deals, possible with some of the countries that are really desperate to do business with us—I think India is a really important case in point there—so I am generally optimistic that the worst is over," quoted Fortune.Tariffs generate significant revenue, which makes them appealing to governments looking for income.Yes, according to Gomes, both Democrats and Republicans are likely to continue using tariffs due to the revenue they generate.
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