{"slug": "more-evidence-on-the-effects-of-recent-tariffs", "title": "More evidence on the effects of recent tariffs", "summary": "U.S. tariff rates in 2025 reached levels not seen since the Great Depression, yet imports increased, according to a new open-economy New Keynesian model that accounts for the missing trade collapse by incorporating tariff heterogeneity, inventories, and investment shocks tied to the AI-driven boom.", "body_md": "Trump is giving economists something to write papers about: U.S. tariff rates in 2025 rose to levels not seen since the Great Depression, yet imports increased. To account for the missing trade collapse, we develop an open-economy New Keynesian model with tariff heterogeneity, inventories, and shocks to investment that capture the AI-driven boom. The model […]\n\nThe post [More evidence on the effects of recent tariffs](https://marginalrevolution.com/marginalrevolution/2026/08/more-evidence-on-the-effects-of-recent-tariffs.html) appeared first on [Marginal REVOLUTION](https://marginalrevolution.com).", "url": "https://wpnews.pro/news/more-evidence-on-the-effects-of-recent-tariffs", "canonical_source": "https://marginalrevolution.com/marginalrevolution/2026/08/more-evidence-on-the-effects-of-recent-tariffs.html?utm_source=rss&utm_medium=rss&utm_campaign=more-evidence-on-the-effects-of-recent-tariffs", "published_at": "2026-08-21 04:41:32+00:00", "updated_at": "2026-08-21 05:12:30.658411+00:00", "lang": "en", "topics": ["artificial-intelligence"], "entities": ["Marginal REVOLUTION"], "alternates": {"html": "https://wpnews.pro/news/more-evidence-on-the-effects-of-recent-tariffs", "markdown": "https://wpnews.pro/news/more-evidence-on-the-effects-of-recent-tariffs.md", "text": "https://wpnews.pro/news/more-evidence-on-the-effects-of-recent-tariffs.txt", "jsonld": "https://wpnews.pro/news/more-evidence-on-the-effects-of-recent-tariffs.jsonld"}}