Who benefits from tariffs, according to research
Tariffs are usually debated as trade policy. But a study from the University of Chicago Booth School of Business treats them as something else: a mechanism for redistributing wealth.
The University of Chicago Booth School of Business recently published a study suggesting that tariffs are a tool for redistributing wealth among workers, rather than simply a trade policy mechanism. Led by Prof. Rodrigo Adão, the research team analyzed U.S. data from 2017-2019 and found that tariffs result in financial transfers from service-sector workers to those in tradable sectors.
Gains varied significantly by industry and region, with workers in apparel, metals, and vehicle sectors receiving the largest transfers. Lower-income workers generally received smaller benefits. The study also found that lobbying explained about one-fifth of variations in tariff-related gains, but swing-state status did not have a significant impact.
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