Free DP Download 04 March 2019: The Impact of the 2018 Trade War on U.S. Prices and Welfare

Monday, March 4, 2019

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.

"... a beautiful piece of work." Paul Krugman, New York Times


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