Free DP Download 04 March 2019: The Impact of the 2018 Trade War on U.S. Prices and Welfare
The Impact of the 2018 Trade War on U.S. Prices and Welfare
Mary Amiti, Stephen J. Redding, David E. Weinstein
CEPR DP No. 13564 | 2 March 2019
Instead of depressing foreign earnings, Trump's trade tariffs have raised prices for US consumers. The losses to US consumers have exceeded the revenue from the new tariffs, so the tariffs have made America poorer overall.
For foreign countries that have retaliated against the US there is a similar pattern, which indicates that the trade war also reduced real income for other countries.
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