Who's Paying for the US Tariffs? A Longer-Term Perspective
AEA Papers and Proceedings
vol. 110,
May 2020
(pp. 541-46)
Abstract
Using another year of data including significant escalations in the trade war, we find that the costs of the US tariffs continue to be almost entirely borne by US firms and consumers. We show that the response of import values to the tariffs increases in absolute magnitude over time, consistent with the idea that it takes time for firms to reorganize supply chains. We find heterogeneity in the responses of some sectors, such as steel, where tariffs have caused foreign exporters to drop their prices substantially, enabling them to export relatively more than in sectors where tariff pass-through was complete.Citation
Amiti, Mary, Stephen J. Redding, and David E. Weinstein. 2020. "Who's Paying for the US Tariffs? A Longer-Term Perspective." AEA Papers and Proceedings, 110: 541-46. DOI: 10.1257/pandp.20201018Additional Materials
JEL Classification
- F13 Trade Policy; International Trade Organizations
- F14 Empirical Studies of Trade
- F23 Multinational Firms; International Business
- L14 Transactional Relationships; Contracts and Reputation; Networks
- F13 Trade Policy; International Trade Organizations
- F14 Empirical Studies of Trade
- F23 Multinational Firms; International Business