For most of human history, governments have taxed goods crossing their borders. Tariffs — taxes levied on imports or exports — have financed empires, protected domestic industries, and punished foreign rivals. They’ve sparked wars, crashed economies, and redefined alliances.
Yet today’s tariff war between the United States and the world doesn’t fit neatly into any of the old molds. Rather than being a tool to nurture domestic industry or fill government coffers, tariffs are now being wielded as weapons in a sprawling contest over global power and economic dominance.
This article was originally published on IJNet.org. This piece was produced in collaboration with the Global Business Journalism program at Tsinghua University. The program is a partnership between ICFJ, Tsinghua University and Bloomberg News.
The Honorable Robert Zoellick, president of the World Bank and former trustee of the Arthur F. Burns Fellowship, recently spoke about the state of the world economy to alumni, trustees and friends of the fellowship. The Goldman Sachs Group hosted the sixth annual alumni dinner at the Ritz Carlton Hotel in Washington, DC, on Feb. 19.
