When a tariff is imposed the volume of imports shrinks. The cost to the economy is a loss of consumer surplus, as consumers have to pay higher prices to get products that they previously imported at lower prices. ... But part of the loss from the tariff is never recovered, and that is the deadweight loss.

What is deadweight loss in tariff?

More perspective on these deadweight losses: These are net welfare losses not compensated by any transfers from anywhere else in the economy. They are lost GDP (or resources) that simply disappear as a result of the tariff.

How do tariffs affect the economy?

Historical evidence shows that tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output.