Tariffs can play an important role in rebuilding our manufacturing base, if they are done right. We said in a study published in July that so-called “universal” tariffs of 10% on all U.S. imports would grow our economy, adding 2.86% to gross domestic product and 5.7% or $4,300 to real (inflation-adjusted) average household income. Those results are valid and more accurate than other studies that make unrealistic assumptions about how our economy works.

But a better approach would be to target tariffs on the sectors where they could be most effective. Here are five rules which should guide decisions on tariffs (and most other trade or industrial policies) as the next president, whoever he or she may be, considers the global economic landscape next year.

Read the article.