The debate around import tariffs often centers on their short-term impact on inflation. But the long-term impact receives far less attention. As the United States and Europe raise trade barriers against Chinese technology, their populations miss out on large cost advantages. Today, domestically-produced electric cars and -buses from the United States can cost up to three times more than their Chinese equivalents. Given the political unrest over the cost of living across the Western world, it is possible that public opinion will turn against these protectionist policies.
