How Did the 2018–19 U.S. Tariff Hikes Influence Household Spending?
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.
JEL Classification: F10;
File format is application/pdf
Description: Full text
Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Review
Publication Date: 2021-09-30