Tariff Pass-Through at the Border and at the Store: Evidence from US Trade Policy

Alberto Cavallo, Gita Gopinath, Brent Neiman and Jenny Tang

American Economic Review: Insights, 2021, vol. 3, issue 1, 19-34

Abstract: We use microdata collected at the border and the store to characterize the price impact of recent US trade policy on importers, exporters, and consumers. At the border, import tariff pass-through is much higher than exchange rate pass-through. Chinese exporters did not lower their dollar prices by much, despite the recent appreciation of the dollar. By contrast, US exporters significantly lowered prices affected by foreign retaliatory tariffs. In US stores, the price impact is more limited, suggesting that retail margins have fallen. Our results imply that, so far, the tariffs' incidence has fallen in large part on US firms.

JEL-codes: E31 F13 F14 F31 L11 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (78)

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Related works:
Working Paper: Tariff passthrough at the border and at the store: evidence from US trade policy (2019)
Working Paper: Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy (2019)
Working Paper: Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy (2019)
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DOI: 10.1257/aeri.20190536

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