Who benefits from trade tariffs?

History has shown that (almost) no one wins in trade wars. Yet, the political success of protectionist policies will depend on public perception rather than economic reality.

One of the most tragicomic aspects of Trump’s tariffs is that, according to polls, nearly half of Republican voters believe that the cost of these tariffs will be borne by the targeted countries—meaning taxpayers in Canada, Mexico, China, and soon, Europe. In other words, they assume that a simple executive order can magically funnel foreign money into …