Looking ahead to 2025, the potential for increased tariffs is top of mind for many executives. But despite widespread concerns, few leaders have developed robust plans to understand the second- and third-order effects and to steer their businesses through potential scenarios. Those who understand tariffs'and their likely impacts'will be better positioned to navigate the ambiguities of 2025 and beyond. In this article, we look at a brief history of tariffs, some recent examples, reasons why governments impose tariffs, and a range of responses that businesses can take to seize potential opportunities. Tariffs are nothing new, of course. At certain points in its history, the Roman Empire taxed imports of foreign goods at a rate 25 times higher than domestic trade. The current status quo of global trade has its roots in the 20th century. After the US stock market crash of 1929, Congress increased almost 900 tariffs, sparking tit-for-tat retaliation from other countries in the form of...
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