Tariffs and Industrial Policy Fail: The Cases Of US, Japan, and China

Advocates for anti-market policies, such as tariffs and industrial policies, have resurged in popularity in the United States .

Proponents argue they shield domestic industries from foreign competition, enabling growth and job creation.

But historical evidence and economic analyses tell a different story, one in which these policies often fail to deliver their promised benefits.

The failures of tariffs and industrial policies in the United States , Japan , and China underscore the broader limitations of anti-market economic strategies.

These policies often stem from the belief that governments can outmaneuver markets in allocating resources and driving innovation.

Markets excel at aggregating dispersed information, aligning incentives, and fostering competition.