The US-China Trade War and Global Reallocations

Pablo Fajgelbaum, Pinelopi Goldberg, Patrick Kennedy, Amit Khandelwal and Daria Taglioni
Additional contact information
Pablo Fajgelbaum: Princeton University
Patrick Kennedy: University of California, Berkeley
Daria Taglioni: World Bank

Working Papers from Princeton University. Economics Department.

Abstract: We study global trade responses to the US-China trade war. We estimate the tariff impacts on product-level exports to the US, China, and rest of world. On average, countries decreased exports to China and increased exports to the US and rest of world. Most countries export products that complement the US and substitute China, and a subset operate along downward-sloping supplies. Heterogeneity in responses, rather than specialization, drives export variation across countries. Surprisingly, global trade increased in the products targeted by tariffs. Thus, despite ending the trend towards tariff reductions, the trade war did not halt global trade growth.

Keywords: Conflicts; Globalization; United States; China; Trade disputes; Exports; International relations; Tariffs (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-ban, nep-cna, nep-cwa and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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https://www.nber.org/system/files/working_papers/w29562/w29562.pdf

Related works:
Journal Article: The US-China Trade War and Global Reallocations (2024)
Working Paper: The US-China Trade War and Global Reallocations (2022)
Working Paper: The US-China Trade War and Global Reallocations (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2021-80

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