The Production Relocation and Price Effects of US Trade Policy: The Case of Washing Machines

Aaron Flaaen, Ali Hortacsu and Felix Tintelnot

American Economic Review, 2020, vol. 110, issue 7, 2103-27

Abstract: We estimate the price effect of US import restrictions on washers. The 2012 and 2016 antidumping duties against South Korea and China were accompanied by downward or minor price movements along with production relocation to other export platform countries. With the 2018 tariffs, on nearly all source countries, the price of washers increased nearly 12 percent. Interestingly, the price of dryers—not subject to tariffs—increased by an equivalent amount. Factoring in dryer prices and price increases by domestic brands, the 2018 tariffs on washers imply a tariff elasticity of consumer prices of above one.

JEL-codes: F13 F14 F23 L68 O19 P33 (search for similar items in EconPapers)
Date: 2020
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Working Paper: The Production Relocation and Price Effects of U.S. Trade Policy: The Case of Washing Machines (2019)
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DOI: 10.1257/aer.20190611

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