Economic Dominos

   Tariff = Import tax
   Goal = To protect national production by keeping out foreign-made stuff.
   Result = Higher prices to consumers.
   Reality = Prices on both domestic and foreign goods go up, rewarding national producers, but foreign producers are also rewarded as they pass on higher costs to consumers as profit margins remain the same.
   Ultimate losers =  1/ Consumers, who pay higher prices; 2/ Firms, who trim costs and profits to remain competitive; and 3/ Workers, who lose jobs.
   Reaction = Retaliatory tariffs imposed by other countries.
   Consequence = International recession, an economic downturn as prices rise, production slows, and workers lose jobs.
   Implication = What starts as a trade war soon becomes a real military war.

   Note to politicians: Do you really want to go there?