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How Did the 2018–19 U.S. Tariff Hikes Influence Household Spending?

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  • Jun Nie
  • Alice von Ende-Becker
  • Shu-Kuei X. Yang

Abstract

Jun Nie, Alice von Ende-Becker, and Shu-Kuei X. Yang construct a tariff intensity measure to assess the uneven effects of the 2018–19 tariff increases across different types of households. They find that low-income households were more exposed to tariff increases than high-income households; younger households were more exposed than older households; Black households were more exposed than white or Asian households; and Hispanic households were more exposed than non-Hispanic households. In addition, they find that the tariff increases led to only a small shift in household spending from categories that were more exposed to tariff increases to categories that were less exposed to tariff hikes by the end of 2019.

Suggested Citation

  • Jun Nie & Alice von Ende-Becker & Shu-Kuei X. Yang, 2021. "How Did the 2018–19 U.S. Tariff Hikes Influence Household Spending?," Economic Review, Federal Reserve Bank of Kansas City, vol. 106(no.4), pages 5-20, September.
    • Handle: RePEc:fip:fedker:93112
    DOI: 10.18651/ER/v106n4NievonEndeBeckerYang
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    References listed on IDEAS

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    1. Alberto Cavallo & Gita Gopinath & Brent Neiman & Jenny Tang, 2021. "Tariff Pass-Through at the Border and at the Store: Evidence from US Trade Policy," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 19-34, March.
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    JEL classification:

    • F10 - International Economics - - Trade - - - General

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