The Impacts of the U.S. Trade War on Chinese Exporters

Yang Jiao, Zhikuo Liu, Zhiwei Tian and Xiaxin Wang
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Yang Jiao: Fudan University
Zhikuo Liu: Fudan University
Zhiwei Tian: Shanghai University of Finance and Economics
Xiaxin Wang: Fudan University

The Review of Economics and Statistics, 2024, vol. 106, issue 6, 1576-1587

Abstract: This paper studies the impacts of the 2018 U.S. tariff surges on export prices and adjustments of sales across different markets of Chinese exporters. The finding that U.S. tariffs did not affect the free-on-board price of Chinese exports is robust to controlling for firm-related fixed effects. While firms’ exports to the United States dropped significantly, exports to the EU increased moderately and domestic sales or exports to other foreign markets were barely affected. Finally, by surveying managers of exporting firms, we shed light on potential impediments to firms’ adjustments of export prices and sales.

Date: 2024
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