Trade Talks Episode 86: When Is Tariff Revenue Bad Tax Revenue?

Lucie Gadenne (University of Warwick, IFS) joins Keynes and Bown to explain when and why some countries use import tariffs as an important source of total tax revenue collections. They discuss her research on the fiscal cost of trade liberalization, what has happened recently when poor countries cut tariffs, and how and why things were different historically when today’s rich countries opened up to trade.