CEU Economic Seminar Series: Global Reallocations in the US-China Trade War

We study global trade reallocations in response to the United States-China trade war of 2018-19. On average, countries in the rest of the world reallocated exports into the US in products with higher tariffs. Surprisingly, these countries strongly increased exports to the rest of the world. We find that the heterogeneity across countries in these elasticities, rather than differences in specialization across products targeted by tariffs, explain the ranking of winners and losers from the trade war.

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