The impact of US tariffs against China on US imports: Evidence for trade diversion?
Year: 2021
Type: article
Abstract: We provide evidence on the existence of short‐run trade diversion effects towards third countries as a consequence of tariff shocks. We exploit sudden policy changes in the context of the trade dispute between the United States and China in 2018. Based on a data set covering monthly product‐level information on US imports from 30 countries for the period 2016 until May 2019, we employ a difference‐in‐differences estimation framework. Doing so, we can show a strong negative direct effect of US tariffs on US imports from China, but do not find evidence for significant short‐run trade diversion effects towards third countries.
Source: Economic Inquiry
DOI: 10.1111/ecin.13043
Authors: Simone Cigna, Philipp Meinen, Patrick Schulte, Nils Steinhoff
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,900
OpenAlex ID: W3206063159