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Job losses
But what about the impact of tariffs on job creation? Surprisingly, an increase in import taxes has been found to result in slightly more unemployment across countries.
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An example provided by Irwin at Dartmouth College points to one plausible explanation — and it has to do with the steeper cost of imported goods.

“A number of studies have shown, on net, we lost jobs from the (2018) steel tariffs rather than gained jobs because there are more people employed in the downstream user industries than in the steel industry itself,” he said.
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A study by the Federal Reserve Board found that a rise in input costs resulting from US tariff hikes in 2018-19 led to job losses in American manufacturing. The damage from those higher expenses was compounded by retaliatory taxes on US exports, more than offsetting a small boost to manufacturing employment from US tariffs — at least so far, the 2024 paper said.

Retaliation by other countries is indeed another danger of pulling the tariff lever. Higher tariffs on American exports would typically raise their prices for foreign consumers, hitting demand for the goods in many cases.

When Trump announced new tariffs this year, America’s major trading partners were quick to strike back with their own levies, although the US then agreed a temporary truce with China and the European Union.

Costs of free trade
While economists generally agree that free trade has benefited the global economy in recent decades, they acknowledge that it comes with certain costs.

One is the loss of jobs in communities that are particularly exposed to new competition from foreign manufacturers.

That is similar to the impact of technological progress on workers. “Manufacturing jobs as a share of the labor force have come down everywhere. It isn’t a US-specific story,” said Gimber at JPMorgan Asset Management, pointing to automation.

He drew a parallel between helping workers affected by higher imports and what is known as a just transition — the idea that the drastic changes needed to move toward a greener economy should be fair to everyone and minimize harm to workers and communities.

In both cases, providing workers in impacted industries with new skills or retraining them could be key, Gimber said.

Another potential cost of free trade is dependency on far-flung manufacturers. That took on new relevance during the pandemic, which snarled global supply chains, contributing to shortages of products such as face masks and respirators in the US and elsewhere.

However, economists do not typically see tariffs as a good way to build up domestic manufacturing, Fatas at INSEAD said, noting that subsidies for specific industries are viewed as a better tool “because they work more directly.”

But perhaps the strongest argument in favor of free trade is its importance to maintaining peace between nations.

As Gimber’s colleague David Kelly noted in March, closer trade relations give countries more to lose in any conflict.

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The latest Barbie slays in a chic blue polka-dot crop top, ruffled miniskirt, chunky heels and an insulin pump. She is the brand’s first doll with type 1 diabetes.
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Dollmaker Mattel worked with Breakthrough T1D, formerly known the Juvenile Diabetes Research Foundation, to design the doll, which aims to represent the roughly 304,000 kids and teens living with type 1 diabetes in the United States.
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The doll launched Tuesday at the Breakthrough T1D Children’s Congress, a three-day event in Washington that brings in kids and teens living with the condition to meet with lawmakers. This year, they’re asking Congress to renew funding for the Special Diabetes Program, which was first allocated by Congress in 1997. The program’s current funding ends after September.

The advocacy efforts have taken on new urgency this year. With so many deep cuts to federally funded projects in recent months, Breakthrough T1D said it’s anxiously watching to see if this funding will be reupped.

Type 1 diabetes is an autoimmune disease, meaning the body mistakenly attacks its own organs and tissues. In this case, rough antibodies go after cells in the pancreas that make insulin, an essential hormone that helps the body turn food into energy. As a result, the body doesn’t make enough of its own insulin, so people have to take insulin by injection or though a pump to survive.

Type 1 diabetes is typically diagnosed in childhood but can be diagnosed in anyone at any age. It differs from type 2 diabetes, in which people are still able to make insulin but their cells stop responding to it.

In addition to the insulin pump that attaches to the new Barbie’s waist, the chestnut-haired beauty has a continuous glucose monitor on her arm – a button held on by a strip of heart-shaped Barbie-pink tape. Her cell phone displays an app that shows her glucose readings. She also has a light blue purse to hold her supplies and snacks to help her manage her blood sugar throughout the day. It matches her shoes, of course.

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Amaghlobeli was arrested Jan. 12 during an anti-government protest in the coastal city of Batumi, one of over 40 people in custody on criminal charges from a series of demonstrations that have hit the South Caucasus nation of 3.7 million in recent months.
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The political turmoil follows a parliamentary election that was won by the ruling Georgian Dream party, although its opponents allege the vote was rigged.

Protests highlight battle over Georgia's future. Here's why it matters.
Its outcome pushed Georgia further into Russia's orbit of influence. Georgia aspired to join the European Union, but the party suspended accession talks with the bloc after the election.

As it sought to cement its grip on power, Georgian Dream has cracked down on freedom of assembly and expression in what the opposition says is similar to President Vladimir Putin's actions in neighboring Russia, its former imperial ruler.
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