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A Tariffying Thought: Imposing Tariffs on US Apparel Imports from China

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  • Liu, Bing
  • Hudson, Daren
  • Devine, Jon

Abstract

Using a source-differentiated Almost Ideal Demand System (SDAIDS) model, this paper analyzes US demand for apparel imports and estimates effects of a 15% tariff increase on clothing imports from China. Our welfare analysis estimated a consumer surplus loss of about $348 million per year. Our findings show that China can improve its market position by lowering their prices, or conversely, that tariffs will disproportionally reduce Chinese market share. However, other Asian apparel exporting countries, especially Vietnam and Bangladesh, are strong competitors that could represent a challenge to the current market position of China.

Suggested Citation

  • Liu, Bing & Hudson, Daren & Devine, Jon, . "A Tariffying Thought: Imposing Tariffs on US Apparel Imports from China," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 23(2).
    • Handle: RePEc:ags:ecjilt:329968
    DOI: 10.22004/ag.econ.329968
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    References listed on IDEAS

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