Details
| Original language | English |
|---|---|
| Pages (from-to) | 690-696 |
| Number of pages | 7 |
| Journal | Applied economics letters |
| Volume | 27 |
| Issue number | 9 |
| Early online date | 29 Jul 2019 |
| Publication status | Published - 2020 |
Abstract
This article evaluates the recent protectionist US trade policy and the retaliation of the EU and China. The article employs a New Quantitative Trade Theory model and an Armington model for comparison. The simulation results show that US car tariffs are a credible threat to the EU, but the steel and aluminum tariffs are not. China suffers considerably from the US tariffs, especially the latest extended, tightened tariffs. The retaliation measures of the EU and China, however, do not cause significant US welfare losses compared to the situation without mutual trade policy.
Keywords
- China, EU, international organizations, numerical models, Trade policy, trade war, USA
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
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In: Applied economics letters, Vol. 27, No. 9, 2020, p. 690-696.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - The US trade dispute
T2 - blunt offense or rational strategy?
AU - Hübler, Michael
AU - Herdecke, Axel
PY - 2020
Y1 - 2020
N2 - This article evaluates the recent protectionist US trade policy and the retaliation of the EU and China. The article employs a New Quantitative Trade Theory model and an Armington model for comparison. The simulation results show that US car tariffs are a credible threat to the EU, but the steel and aluminum tariffs are not. China suffers considerably from the US tariffs, especially the latest extended, tightened tariffs. The retaliation measures of the EU and China, however, do not cause significant US welfare losses compared to the situation without mutual trade policy.
AB - This article evaluates the recent protectionist US trade policy and the retaliation of the EU and China. The article employs a New Quantitative Trade Theory model and an Armington model for comparison. The simulation results show that US car tariffs are a credible threat to the EU, but the steel and aluminum tariffs are not. China suffers considerably from the US tariffs, especially the latest extended, tightened tariffs. The retaliation measures of the EU and China, however, do not cause significant US welfare losses compared to the situation without mutual trade policy.
KW - China
KW - EU
KW - international organizations
KW - numerical models
KW - Trade policy
KW - trade war
KW - USA
UR - http://www.scopus.com/inward/record.url?scp=85070221543&partnerID=8YFLogxK
U2 - 10.1080/13504851.2019.1644428
DO - 10.1080/13504851.2019.1644428
M3 - Article
AN - SCOPUS:85070221543
VL - 27
SP - 690
EP - 696
JO - Applied economics letters
JF - Applied economics letters
SN - 1350-4851
IS - 9
ER -