Arbeitspapier

The impact of US tariffs against China on US imports: Evidence for trade diversion?

In this paper we provide evidence on the existence of short-run trade diversion effects as a consequence of tariff shocks. We exploit sudden policy changes in the context of the trade dispute between the US and China. Based on a data set covering monthly product-level information on US imports from 30 countries for the period January 2016 until May 2019, we employ a difference-in-differences estimation framework. Doing so, we (1) can confirm previous findings showing a strong negative direct effect of US tariffs on US imports from China, but (2) do not find evidence for significant short-run trade diversion effects towards third countries. This latter finding holds for product and country subgroups as well as for a variety of robustness checks.

ISBN
978-3-95729-653-5
Language
Englisch

Bibliographic citation
Series: Deutsche Bundesbank Discussion Paper ; No. 46/2019

Classification
Wirtschaft
Trade Policy; International Trade Organizations
Empirical Studies of Trade
Subject
tariffs
US imports
trade diversion
product-level data
difference-in-differences

Event
Geistige Schöpfung
(who)
Meinen, Philipp
Schulte, Patrick
Cigna, Simone
Steinhoff, Nils
Event
Veröffentlichung
(who)
Deutsche Bundesbank
(where)
Frankfurt a. M.
(when)
2019

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Meinen, Philipp
  • Schulte, Patrick
  • Cigna, Simone
  • Steinhoff, Nils
  • Deutsche Bundesbank

Time of origin

  • 2019

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