Britain's Unilateral Tariff Cuts Could Backfire, Worsen Trade Deficit
The article delves into whether British tariff cuts in the 1840s were beneficial. Some experts thought these cuts alone could harm Britain. By examining British trade patterns at the time, the researchers built a model to see how tariff reductions affected the country's well-being. The study finds that just lowering tariffs in Britain would have actually hurt the country. However, when other countries also reduced tariffs, it helped offset this negative impact and could have even made Britain better off overall.