EconPapers    
Economics at your fingertips  
 

A Quantitative Analysis of Tariffs across U.S. States

Ana Maria Santacreu, Michael Sposi () and Jing Zhang ()

No 2021-007, Working Papers from Federal Reserve Bank of St. Louis

Abstract: We develop a quantitative framework to assess the cross-state implications of a U.S. trade policy change: a unilateral increase in the import tariff from 2 to 25 across all goods-producing sectors. Although the U.S. gains overall from the tariff increase, we find the impact differs starkly across locations. Changes in real consumption (welfare) range from as high as 3.8% in Wyoming to $-0.3% in Florida, depending mainly on how exposed states are to differentially-impacted sectors. As a result, the "preferred'' tariff rate varies greatly across states. Foreign retaliation in trade policy substantially reduces the welfare gains across states, while perpetuating the cross-state variation in those gains. The presence of internal trade frictions amplifies the welfare impacts of changes in trade policy.

Keywords: International trade; Interstate trade; Welfare gains from trade (search for similar items in EconPapers)
JEL-codes: F11 F62 (search for similar items in EconPapers)
Date: 2021-05-21
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://s3.amazonaws.com/real.stlouisfed.org/wp/2021/2021-007.pdf Full Text (application/pdf)

Related works:
Working Paper: A Quantitative Analysis of Tariffs Across U.S. States (2021) Downloads
Working Paper: A Quantitative Analysis of Tariffs across U.S. States (2021) Downloads
Working Paper: A Quantitative Analysis of Tariffs across U.S. States (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlwp:92106

Ordering information: This working paper can be ordered from

DOI: 10.20955/wp.2021.007

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-10-19
Handle: RePEc:fip:fedlwp:92106