Tariff Debate Heats Up With Lagarde Defending Rules-Based System

With less than five months to go before the US presidential election, the debates about higher tariffs and their inflationary effects on the economy are starting to heat up.

If elected again, Donald Trump has pledged to enact a 10% across-the-board tariff on imports that he says will raise billions of dollars in revenue to pay for more tax cuts. But mainstream economists say such a plan, plus a 60% levy on Chinese imports, would amount to a tax increase for American households.