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Effects of eliminating the US–China trade dispute tariffs

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Title Effects of eliminating the US–China trade dispute tariffs
 
Creator Zheng, Jian
Zhou, Shudong
Li, Xingzi
Padula, Antonio Domingos
Martin, Will
 
Subject economic analysis
trade
tariffs
tariff escalation
agricultural products
income
consumer prices
negotiation
WTO
 
Description This paper examines the economic implications of the tariff increases by the United States and by China during the Trump era trade dispute and the gains from their potential removal. The increases were dramatic, with the US raising tariffs on industrial products by a factor of six – with particularly large tariff increases on intermediate and capital goods – and China increasing its tariffs on US agricultural products more than five-fold. These changes distort trade and production decisions in both countries and undercut the global trading system. They resulted in substantial economic losses to each country, with import volumes reduced by 4.9% in China and 4.5% in the USA, and bilateral trade patterns were massively distorted. Their cost to the United States rose at the end of 2021, when the import expansion provisions of the Trump era Phase One Agreement expired. Negotiating the abolition of these costly and disruptive tariffs would generate substantial real income gains for both countries and help lower US consumer prices.
 
Date 2022-08-15
2023-02-06T07:38:50Z
2023-02-06T07:38:50Z
 
Type Journal Article
 
Identifier Zheng, J., Zhou, S., Li, X., Padula, A.D. and Martin, W. 2022. Effects of eliminating the US–China trade dispute tariffs. World Trade Review. Article in Press. First published online on August 15, 2022. https://doi.org/10.1017/S1474745622000271
1474-7456
https://hdl.handle.net/10568/128436
https://doi.org/10.1017/S1474745622000271
 
Language en
 
Rights CC-BY-4.0
Open Access
 
Source World Trade Review