ExplainSpeaking: Why Trump loves tariffs, and why he shouldn't

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Dear Readers, Policymakers and investors across the world are waiting anxiously for April 2, when US President Donald Trump is set to announce "reciprocal tariffs" on the rest of the world and celebrate the move as "Liberation Day" for the US. No one has any clarity on how reciprocal tariffs will be calculated for each country; for instance, whether domestic subsidies or tax incentives or non-tariff barriers will also be factored in while arriving at the reciprocal tariff number. Since tariffs alter the effective prices of goods and services, a move of such a global scale by the world's largest…

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