IDEAS home Printed from https://ideas.repec.org/p/ags/aare19/287203.html
   My bibliography  Save this paper

Tariff wars and their implications for agricultural exporters

Author

Listed:
  • Vanzetti, David
  • Do, Lien Huong

Abstract

In July 2018 the Trump Administration initiated a tariff war by imposing additional duties of 25 percentage points on selected imports from China. As promised, China responded with bilateral tariffs of its own. As a result, both countries are worse off. Not so obvious is the impact on third countries, including exporters competing with the USA, such as Australia or Brazil, or exporters competing with China to supply the US market, such as Korea and Japan. Analysis using a global computable general equilibrium model suggests that a bilateral tariff war does not make every country worse off. Indeed, if the effects are confined to tariff cuts, as opposed to investment flows, most countries gain. This is because most imports between the USA and China have substitutes, albeit imperfect. This means that most imports can be obtained elsewhere. Conversely, both the USA and China can export to alternative markets. Trade and welfare effects are presented.

Suggested Citation

  • Vanzetti, David & Do, Lien Huong, 2019. "Tariff wars and their implications for agricultural exporters," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 287203, Australian Agricultural and Resource Economics Society (AARES).
    • Handle: RePEc:ags:aare19:287203
    DOI: 10.22004/ag.econ.287203
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/287203/files/Vanzetti%26Do_AARES2019.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.287203?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
    ---><---

    More about this item

    Keywords

    Agricultural and Food Policy; International Relations/Trade;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aare19:287203. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    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.