The US-China Trade War and Global Reallocations

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...

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Bibliographic Details
Main Authors: Fajgelbaum, Pablo, Goldberg, Pinelopi, Kennedy, Patrick, Khandelwal, Amit, Taglioni, Daria
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2022
Subjects:
TRADE WAR
DOWNWARD-SLOPING SUPPLY
GLOBAL TRADE
Online Access:http://documents.worldbank.org/curated/undefined/735611641482672239/The-US-China-Trade-War-and-Global-Reallocations
http://hdl.handle.net/10986/36815
id okr-10986-36815
recordtype oai_dc
spelling okr-10986-368152022-01-14T05:10:33Z The US-China Trade War and Global Reallocations Fajgelbaum, Pablo Goldberg, Pinelopi Kennedy, Patrick Khandelwal, Amit Taglioni, Daria TRADE WAR DOWNWARD-SLOPING SUPPLY GLOBAL TRADE 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. 2022-01-13T14:36:25Z 2022-01-13T14:36:25Z 2022-01 Working Paper http://documents.worldbank.org/curated/undefined/735611641482672239/The-US-China-Trade-War-and-Global-Reallocations http://hdl.handle.net/10986/36815 English Policy Research Working Paper;No. 9894 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China United States
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic TRADE WAR
DOWNWARD-SLOPING SUPPLY
GLOBAL TRADE
spellingShingle TRADE WAR
DOWNWARD-SLOPING SUPPLY
GLOBAL TRADE
Fajgelbaum, Pablo
Goldberg, Pinelopi
Kennedy, Patrick
Khandelwal, Amit
Taglioni, Daria
The US-China Trade War and Global Reallocations
geographic_facet East Asia and Pacific
China
United States
relation Policy Research Working Paper;No. 9894
description 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.
format Working Paper
author Fajgelbaum, Pablo
Goldberg, Pinelopi
Kennedy, Patrick
Khandelwal, Amit
Taglioni, Daria
author_facet Fajgelbaum, Pablo
Goldberg, Pinelopi
Kennedy, Patrick
Khandelwal, Amit
Taglioni, Daria
author_sort Fajgelbaum, Pablo
title The US-China Trade War and Global Reallocations
title_short The US-China Trade War and Global Reallocations
title_full The US-China Trade War and Global Reallocations
title_fullStr The US-China Trade War and Global Reallocations
title_full_unstemmed The US-China Trade War and Global Reallocations
title_sort us-china trade war and global reallocations
publisher World Bank, Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/undefined/735611641482672239/The-US-China-Trade-War-and-Global-Reallocations
http://hdl.handle.net/10986/36815
_version_ 1764485951038423040

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