Who Pays for Tariffs Along the Supply Chain? Evidence from European Wine Tariffs

Aaron B. Flaaen, Ali Hortaçsu, Felix Tintelnot, Nicolas Urdaneta and Yi Xu

No 34392, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study how tariffs affect prices along the supply chain using product-level data from a large U.S. wine importer during the 2019-2021 U.S. tariffs on European wines. Combining confidential transaction prices with foreign suppliers, U.S. distributors, and retail prices, we trace tariff passthrough from producers to consumers. Pass-through at the border is incomplete, yet consumers paid more than the tariff revenue collected. The dollar markups per bottle for the importer contracted, but expanded for the combined distributor-retailer segment. Price changes along the chain reached consumers after one year. We also document tariff engineering that biases unit values in trade statistics.

JEL-codes: F13 F14 L66 L81 (search for similar items in EconPapers)
Date: 2025-10
New Economics Papers: this item is included in nep-agr, nep-com, nep-ifn and nep-int
Note: IFM IO ITI PR
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w34392.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
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:nbr:nberwo:34392

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w34392
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().