Basic economic theory implies a 10% broad tariff should push the dollar up about 5%, offsetting the tariff's effect on import costs and equally reducing both exports and imports, leaving the trade deficit unchanged in that simple framework.

causalpending

Speaker

Joseph Gagnon

Evidence Quote

a 10% broad tariff should push the dollar up about 5%.

Source

The changing dollar regime: An updatePeterson Institute for International Economics
Created: 6/18/2026, 1:57:48 PM

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