Trade barriers converted to tariffs may impact U.S. farm exports significantly.
The article presents a model showing how trade barriers can be turned into tariffs. It suggests that replacing certain policies with tariffs may not always lead to the same trade outcomes. Initially, U.S. farm exports may decrease as foreign trade barriers are expected to drop. This could cause a shift in demand and production in the foreign agricultural sector. However, once trade restrictions are actually reduced, U.S. export performance is likely to improve.