The US-China Trade War and Global Reallocations

Pablo Fajgelbaum, Pinelopi Goldberg, Patrick J. Kennedy, Amit Khandelwal and Daria Taglioni (dtaglioni@worldbank.org)

No 29562, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The US-China trade war created net export opportunities rather than simply shifting trade across destinations. Many “bystander” countries grew their exports of taxed products into the rest of the world (excluding US and China). Country-specific components of tariff elasticities, rather than specialization patterns, drove large cross-country variation in export growth of tariff-exposed products. The elasticities of exports to US-China tariffs identify whether a country’s exports complement or substitute US or China and its supply curve’s slope. Countries that operate along downward-sloping supplies whose exports substitute (complement) US and China are among the larger (smaller) beneficiaries of the trade war.

JEL-codes: F10 F12 F14 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-cna, nep-cwa and nep-int
Note: ITI
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Citations: View citations in EconPapers (18)

Published as Pablo Fajgelbaum & Pinelopi Goldberg & Patrick Kennedy & Amit Khandelwal & Daria Taglioni, 2024. "The US-China Trade War and Global Reallocations," American Economic Review: Insights, vol 6(2), pages 295-312.

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Related works:
Journal Article: The US-China Trade War and Global Reallocations (2024)
Working Paper: The US-China Trade War and Global Reallocations (2021)
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