Abstract
Tariffs are a kind of sanction and are getting used ubiquitously by those intending to change behavior and/or to encourage indigenous production. Populism, whether on one end of the political spectrum or the other, has much to do with it, as does some genuinely unfair set of trade practices by some countries. Our paper studies the effects of tariffs and other forms of protectionist policies on the global macroeconomy, especially in this day of unmitigated nationalism. Notwithstanding the utility of this protectionist tool, it is the broader implications arising therefrom that need addressing. They include - and are not just limited to - trade wars, global supply chains disruption, economic decline, distressed employment, and inflationary pressures. A review of the literature on economic theories, case studies of the recent protectionist measures, and general other qualitative consequences informs us that the persistent use of such practices is detrimental and calls for a holistic reassessment of trade policies. It is our intent, via this paper, to bring out ideas to encourage fair trade policies, create a healthy business environment based on relative advantage, and foster sustainable economic growth on a global plain.