J. Jensen

4 weeks ago | piie.com | J. Jensen |Scott J. Wallsten

President Donald Trump’s on-again, off-again tariffs have shocked bond and stock markets, clouded economic forecasts, and sent analysts scrambling to explain the impact on prices and supply chains. Yet the effects of tariffs on innovation have received far less attention. Because innovation drives productivity, and productivity drives economic growth, the effects on innovation are significant. Tariffs fracture the global economy, effectively shrinking markets.