Tariffs, the Dollar and the US Economy: A Discussion of the “Mar-a-Lago Accord”

Proponents of the ‘Mar-a-Lago Accord’ share an ambition to revitalise US industry and redress the country’s current account through the aggressive use of tariffs and, specifically, a reduction in the US dollar’s status as the dominant global reserve currency. This column argues that this strategy is based on a biased appreciation of the US situation and the costs and benefits for the US of the current regime. The strategy may prove extremely self-defeating for the US in the long run.

Read the full CEPR Policy Insight by Jean-Pierre Landau.