Import Tariffs

It seems to me that the amount of income from Import Tariffs is vastly less than what would be potentially earned.

According to The CIA World Factbook, the US had approximately $2.361 trillion dollars worth of imports in 2017. With the current maximum, the tariff would only be about 0.23%. For the UK, there were about $615.9 billion in imports in 2017, making the tariff about 0.12%.

While the numbers have surely changed a bit since then, this is still pretty low. I highly doubt a tariff of less than 0.5% would reduce International Trade by 45%.

Also, the income of the tariff should probably be scaled by the amount of International Trade.


I guess our assumption is that tariffs are on limited goods, with limited countries. There are few situations where any country would have a blanket tariff on everthing.

However, we may well be setting the amount low, accroding to this article:’s%20revenue%20from,%2430-40%20billion%20per%20year.
Its currently about 3 or 4% us government income, which is quite high. I’ll look into it.

And yes, it should definitely scale with trade

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