Household incomes could rise by 2.5% with agricultural tariff elimination.
Trade reforms can affect households differently based on income levels. A new database was created to study the impact of tariffs on households in 54 low- and lower-middle income countries. The data showed that removing agricultural tariffs could increase household incomes by an average of 2.50 percentage points. However, the effects of tariffs vary widely among countries and within countries among different households and income earners. The gains from trade within a country can differ by an average of 1.01 percentage points.