Across the board tariff increase - what does it do?

Tariffs are the mainstay of any discussion on international trade. WTO members bind their tariff limits in the WTO with commitments. There are basically two categories - bound and applied. Bound tariffs is the limit beyond which imposition of tariffs would be a violation of international obligations. Applied tariffs are those that are actually applied by a WTO member. As long as applied tariffs do not cross the bound tariff level, things are fine.

Explaining the impact of raising tariffs across the board on a local economy is not easy. Doing it in simple terms is even more difficult. Wendy Edelberg and Maurice Obstfeld in their piece titled "Tariffs on all imports would create chaos for business" in Brookings outline the impact tariffs could have on the US economy (for that matter any economy):

1. Higher prices for consumers

2. Impacts exporters who rely on intermediate goods that are imported

3. A number of exemptions from the tariffs that creates winners and losers

4. Inflationary pressures

5. Retaliation from trade partners making exports costlier

6. Need to re-negotiate contracts to mitigate the impact of tariffs on intermediate/finished goods imports

Pretty straightforward and clear. What caught my attention in this piece is a reference to an article in ProPublica on how China had become the largest source of the Bible to the United States. As per this piece, China's Amity Printing said it printed 14.15 million copies in 2017. 

The hidden treasures of international trade!