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Tariffs and Politics: Evidence from Trump's Trade Wars.
- Source :
- Economic Journal; May2021, Vol. 131 Issue 636, p1717-1741, 25p, 7 Charts, 3 Graphs, 1 Map
- Publication Year :
- 2021
-
Abstract
- We use the recent trade escalation between the USA and its trade partners to study whether retaliatory tariffs are politically targeted. We find comprehensive evidence using individual and aggregate voting data suggesting that retaliation is carefully targeted to hurt Trump. We develop a simulation approach to construct counterfactual retaliation responses allowing us to quantify the extent of political targeting while also studying potential trade-offs. China appears to place great emphasis on achieving maximal political targeting. The EU seems to have been successful in maximising political targeting while at the same time minimising the potential damage to its economy. [ABSTRACT FROM AUTHOR]
- Subjects :
- INTERNATIONAL trade disputes
TARIFF
EVIDENCE
PRACTICAL politics
Subjects
Details
- Language :
- English
- ISSN :
- 00130133
- Volume :
- 131
- Issue :
- 636
- Database :
- Complementary Index
- Journal :
- Economic Journal
- Publication Type :
- Academic Journal
- Accession number :
- 150148385
- Full Text :
- https://doi.org/10.1093/ej/ueaa122