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Discussion Paper

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


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.

https://doi.org/10.17016/2380-7172.2845

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2021-03-04

Number: 2021-03-04-1