The US-China Trade War and Global Reallocations
This paper studies global trade responses to the US-China trade war. It estimates the tariff impacts on product-level exports to the US, China, and rest of world. On average, countries decreased exports to China and increased exports to the US and...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/735611641482672239/The-US-China-Trade-War-and-Global-Reallocations http://hdl.handle.net/10986/36815 |
| Summary: | This paper studies global trade
responses to the US-China trade war. It estimates the tariff
impacts on product-level exports to the US, China, and rest
of world. On average, countries decreased exports to China
and increased exports to the US and rest of world. Most
countries export products that complement the US and
substitute China, and a subset operate along
downward-sloping supplies. Heterogeneity in responses,
rather than specialization, drives export variation across
countries. Surprisingly, global trade increased in the
products targeted by tariffs. Thus, despite ending the trend
towards tariff reductions, the trade war did not halt global
trade growth. |
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