IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v106y2026ics1544612326007816.html

Who bears the burden of US tariffs? Evidence from export prices

Author

Listed:
  • Fugazza, Marco
  • Olarreaga, Marcelo

Abstract

Who bears the burden of US tariffs: American importers and consumers or foreign exporters? We address this question using monthly export price and tariff data at the tariff line level for all US trading partners between January and July 2025, a period of unprecedented breadth in tariff changes across products and partners. We estimate the elasticity of exporter prices with respect to tariffs using a long log-difference specification, and cross-check results with a first-difference estimator following Cavallo et al. (2025). We find that exporters absorb approximately 10 percent of the tariff increase through lower export prices, with the remaining 90 percent falling on US importers and consumers.

Suggested Citation

  • Fugazza, Marco & Olarreaga, Marcelo, 2026. "Who bears the burden of US tariffs? Evidence from export prices," Finance Research Letters, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:finlet:v:106:y:2026:i:c:s1544612326007816
    DOI: 10.1016/j.frl.2026.110253
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612326007816
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2026.110253?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:106:y:2026:i:c:s1544612326007816. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.