A Tariffying Thought: Imposing Tariffs on US Apparel Imports from China

Bing Liu, Daren Hudson and Jon Devine

Estey Centre Journal of International Law and Trade Policy, 2022, vol. 23, issue 2

Abstract: Using a source-differentiated Almost Ideal Demand System (SDAIDS) model, this paper analyzes US demand for apparel imports and estimates effects of a 15% tariff increase on clothing imports from China. Our welfare analysis estimated a consumer surplus loss of about $348 million per year. Our findings show that China can improve its market position by lowering their prices, or conversely, that tariffs will disproportionally reduce Chinese market share. However, other Asian apparel exporting countries, especially Vietnam and Bangladesh, are strong competitors that could represent a challenge to the current market position of China.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ecjilt:329968

DOI: 10.22004/ag.econ.329968

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