Effects of eliminating the US–China trade dispute tariffs

This paper examines the economic implications of the tariff increases by the United States and by China during the Trump era trade dispute and the gains from their potential removal. The increases were dramatic, with the US raising tariffs on industrial products by a factor of six – with particularl...

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Autores principales: Zheng, Jian, Zhou, Shudong, Li, Xingzi, Padula, Antonio Domingos, Martin, Will
Formato: Journal Article
Lenguaje:Inglés
Publicado: Cambridge University Press 2023
Materias:
Acceso en línea:https://hdl.handle.net/10568/128436
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author Zheng, Jian
Zhou, Shudong
Li, Xingzi
Padula, Antonio Domingos
Martin, Will
author_browse Li, Xingzi
Martin, Will
Padula, Antonio Domingos
Zheng, Jian
Zhou, Shudong
author_facet Zheng, Jian
Zhou, Shudong
Li, Xingzi
Padula, Antonio Domingos
Martin, Will
author_sort Zheng, Jian
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper examines the economic implications of the tariff increases by the United States and by China during the Trump era trade dispute and the gains from their potential removal. The increases were dramatic, with the US raising tariffs on industrial products by a factor of six – with particularly large tariff increases on intermediate and capital goods – and China increasing its tariffs on US agricultural products more than five-fold. These changes distort trade and production decisions in both countries and undercut the global trading system. They resulted in substantial economic losses to each country, with import volumes reduced by 4.9% in China and 4.5% in the USA, and bilateral trade patterns were massively distorted. Their cost to the United States rose at the end of 2021, when the import expansion provisions of the Trump era Phase One Agreement expired. Negotiating the abolition of these costly and disruptive tariffs would generate substantial real income gains for both countries and help lower US consumer prices.
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spelling CGSpace1284362024-11-07T09:52:55Z Effects of eliminating the US–China trade dispute tariffs Zheng, Jian Zhou, Shudong Li, Xingzi Padula, Antonio Domingos Martin, Will economic analysis trade tariffs tariff escalation agricultural products income consumer prices negotiation wto This paper examines the economic implications of the tariff increases by the United States and by China during the Trump era trade dispute and the gains from their potential removal. The increases were dramatic, with the US raising tariffs on industrial products by a factor of six – with particularly large tariff increases on intermediate and capital goods – and China increasing its tariffs on US agricultural products more than five-fold. These changes distort trade and production decisions in both countries and undercut the global trading system. They resulted in substantial economic losses to each country, with import volumes reduced by 4.9% in China and 4.5% in the USA, and bilateral trade patterns were massively distorted. Their cost to the United States rose at the end of 2021, when the import expansion provisions of the Trump era Phase One Agreement expired. Negotiating the abolition of these costly and disruptive tariffs would generate substantial real income gains for both countries and help lower US consumer prices. 2023-05 2023-02-06T07:38:50Z 2023-02-06T07:38:50Z Journal Article https://hdl.handle.net/10568/128436 en Open Access Cambridge University Press Zheng, J., Zhou, S., Li, X., Padula, A.D. and Martin, W. 2023. Effects of eliminating the US–China trade dispute tariffs. World Trade Review 22(2). https://doi.org/10.1017/S1474745622000271
spellingShingle economic analysis
trade
tariffs
tariff escalation
agricultural products
income
consumer prices
negotiation
wto
Zheng, Jian
Zhou, Shudong
Li, Xingzi
Padula, Antonio Domingos
Martin, Will
Effects of eliminating the US–China trade dispute tariffs
title Effects of eliminating the US–China trade dispute tariffs
title_full Effects of eliminating the US–China trade dispute tariffs
title_fullStr Effects of eliminating the US–China trade dispute tariffs
title_full_unstemmed Effects of eliminating the US–China trade dispute tariffs
title_short Effects of eliminating the US–China trade dispute tariffs
title_sort effects of eliminating the us china trade dispute tariffs
topic economic analysis
trade
tariffs
tariff escalation
agricultural products
income
consumer prices
negotiation
wto
url https://hdl.handle.net/10568/128436
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