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The Effect of US-China Tariff Hikes: Differences in Demand Composition Matter

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Abstract

In this note, we estimate the economic effects of the increases in tariffs between China and the USA since the beginning of 2018, taking into account the investment channel. As of the bilateral Phase One agreement in early 2020, the United States has raised tariffs on about $335 billion of Chinese goods and China has raised tariffs on about $120 billion of US goods.

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  • Ricardo M. Reyes-Heroles & Charlotte T. Singer & Eva Van Leemput, 2021. "The Effect of US-China Tariff Hikes: Differences in Demand Composition Matter," FEDS Notes 2021-03-04-1, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfn:2021-03-04-1
    DOI: 10.17016/2380-7172.2845
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