In 2018, the US launched a trade war with China, an abrupt departure from its historical leadership in integrating global markets. By late 2019, the US had tariffed roughly $350 billion of Chinese imports, and China had retaliated on $100 billion US exports. Economists have used a diversity of data and methods to assess the impacts of the trade war on the US, China and other countries. This article reviews what we have learned to date from this work.
international trade and investment
Acknowledgements & Disclosure
Maximilian Schwarz provided excellent research assistance. We thank Jonathan Vogel and Stephen Redding for helpful suggestions. When citing this paper, please use the following: Fajgelbaum PD, Khandelwal AK. 2021. The Economic Impacts of the Trade War. Annu. Rev. Econ. 3: Submitted. DOI: 10.1146/annurev-economics-051420-110410. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.