[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-321405-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-321405-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","economic-commentary-will-taxing-imports-help","Economic Commentary - Will Taxing Imports Help?","","Economic Commentary analyzes the U.S. economic outlook amid a record current-account deficit and large federal budget deficits, focusing on how an across-the-board import tax (tariff surcharge) could affect both deficits. It explains how international trade benefits are not evenly distributed and links the strong dollar to federal borrowing and capital inflows. The commentary details tariff mechanics: higher import prices, changes in import volumes, exchange-rate movements, and partial offsetting effects through dollar appreciation, concluding with estimated impacts on consumer prices and economic conditions.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/economic-commentary-will-taxing-imports-help/321405/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/economic-commentary-will-taxing-imports-help/321405.png","ImageObject",300,407,{"name":42,"@type":43},"Valentina","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-31","2026-09-21",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",10,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What economic conditions does the commentary describe in the United States?","Question",{"text":63,"@type":64},"It describes the strongest economic recovery since the Korean War alongside low inflation, while emphasizing large federal budget deficits and persistent international payments imbalances reflected in a record current-account deficit.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"Why is the dollar strong, according to the document?",{"text":68,"@type":64},"It links the dollar’s strength to the federal budget deficit raising domestic interest rates and attracting foreign capital, alongside relatively weak credit demand abroad that encourages inflows into dollar-denominated assets.",{"name":70,"@type":61,"acceptedAnswer":71},"How does a tariff affect import prices and exchange rates?",{"text":72,"@type":64},"A tariff raises the dollar prices of imported goods, reducing import demand. It also affects foreign currency demand and dollar supply in foreign-exchange markets, tending to appreciate the dollar and partially offset the tariff’s price effects by lowering the dollar price of imports.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},321405,1790144790,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,106,111,115,120,123,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & 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current-account  \nthe strongest economic recovery since  \nthe Korean War,with virtually no increase  \nin the rate of inflation.Uncertainties  \nassociated with persistently large federal-  \nbudget deficits,and with international-payments imbalances,however,cloud theoutlook for continued prosperity.  \nThe federal-budget deficit will equalapproximately $210 billion in the currentfiscal year,representing 5.4 percent ofGross National Product(GNP).In theabsence of significant budget-cuttingmeasures,the deficit will remain in theneighborhood of 4 percent to 5 percentofGNP throughout the decade.During the1970s,the federal-budget deficit averagedslightly more than 2 percent of GNP;during the 1960s,a decade ofrapid capitalaccumulation,the deficit averaged lessthan 1 percent of GNP.As the economycontinues to expand,and as private creditdemands continue to firm,hefty federalcredit needs could place increasing pres-sure on interest rates and could threatenthe continued growth of the interest-sensitive sectors of the economy.  \nMeanwhile,the current-account deficitreached a record $102 bllion,or 3 percentof GNP,in 1984.The current-accountbalance measures our net internationaltrade in goods and services plus U.S.unilateral transfer payments to foreigners.  \nThe views stated herein are those of the authorsand not necessarily those of the Board of Govermorsof the Federal Resenve System or of the FederalResenveBank of Cleveland  \nsurplus or deficit as the most usefulsummary statistic of the nation's gains orlosses from international commerce.Throughout most of the post-World War Ⅱperiod,the United States hasrun a current-account surplus.Most observers expectthe current-account deficit to remain inthe neighborhood of 3 percent of GNP atleast through 1987.The large current-account deficit bears witness to the sub-stantial gains foreign competitors havemade recently against U.S.firms indomestic and world markets.  \nRecently,some policymakers have ex-pressed interest in the possibility ofusingan across-the-board tax on imports toreduce the federal-budget and current-account deficits.Proponents of a tariffsurcharge argue that the levy would reduceU.S.imports,thereby lowering the current-account deficit,while raising revenuesto reduce the federal-budget deficit.Inthis Economic Commentary,we examinethe possible effects of an across-the-boardtariff and estimate its costs.  \n# The Current InternationalEnvironment\n\nEconomic theory and centuries of economichistory have taught that nations engagedin international trade reap substantialbenefits in terms of the quantity anddiversity of products available for con-sumption.Trading nations have alwaysprospered more than nations that have  \n# Will Taxing ImportsHelp?\n\nby Michael F.Bryan andOwen F.Humpage  \n8?HOMAS 4QUiNAS201EGELBRARYP8A  1    y1007  \nclosed their borders.Recent experiencehas demonstrated,however,that thebenefits of international trade are notalways evenly distributed.The UnitedStates is currently experiencing a recordcurrent-account deficit,much of which isattributable to the 72 percent appreciationof the dollar since 1980.A dollar appreci-ation lowers the dollar-price of U.S.imports and raises the foreign-currencyprice of exports.A dollar appreciationbenefits consumers and importers,buthurts U.S.industries that compete againstimports and that sell goods in foreignmarkets.  \nMany analysts cite the federal-budgetdeficit as one important factor contributingto the dollar's strength.The relationshipbetween the federal-budget deficit andexchange rates is neither simple nor direct.It relies on the deficit's tendency to raisedomestic interest rates and to attract foreigncapital,which depends crucially on thebehavior of private savings and invest-ment both here and abroad.Heavy federalborrowing is consuming a record peace-time share of the private savings availableto finance private credit needs in theUnited States","cbCaivOTvVTSdeYC","https://ap.wps.com/l/cbCaivOTvVTSdeYC","pdf",1480423,"English","# The Current International Environment\n# Will Taxing ImportsHelp?\n# The Effects of a Tariff","[{\"question\":\"What economic conditions does the commentary describe in the United States?\",\"answer\":\"It describes the strongest economic recovery since the Korean War alongside low inflation, while emphasizing large federal budget deficits and persistent international payments imbalances reflected in a record current-account deficit.\"},{\"question\":\"Why is the dollar strong, according to the document?\",\"answer\":\"It links the dollar’s strength to the federal budget deficit raising domestic interest rates and attracting foreign capital, alongside relatively weak credit demand abroad that encourages inflows into dollar-denominated assets.\"},{\"question\":\"How does a tariff affect import prices and exchange rates?\",\"answer\":\"A tariff raises the dollar prices of imported goods, reducing import demand. It also affects foreign currency demand and dollar supply in foreign-exchange markets, tending to appreciate the dollar and partially offset the tariff’s price effects by lowering the dollar price of imports.\"}]","Economic Commentary - Will Taxing Imports Help? | PDF",1789959204,13]