Decoupling from China: an economic analysis of the impact on the U.S. economy of a permanent tariff on Chinese imports

Steven Byers () and Jeff Ferry
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Steven Byers: Coalition for a Prosperous America
Jeff Ferry: Coalition for a Prosperous America

Business Economics, 2019, vol. 54, issue 4, No 6, 248-256

Abstract: Abstract America’s pursuit of low-cost overseas production and China’s thirst for export markets have resulted in industrial decline in the U.S. and raised serious questions about national security. An economic decoupling from China is now actively discussed in Washington. We model the economic impact of a permanent 25% across-the-board tariff on imports from China to study its macroeconomic effects. We find significant gains in GDP and employment and a large reorientation of U.S. supply chains.

Keywords: Tariff; International trade; Supply chain; Firm location (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1057/s11369-019-00141-8

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