Publications

Article

When Talk Is "Free": The Effect of Tariff Structure on Usage Under Two- and Three-Part Tariffs

By: Eva Ascarza, Anja Lambrecht and Naufel Vilcassim

In many service industries, firms introduce three-part tariffs to replace or complement existing two-part tariffs. In contrast with two-part tariffs, three-part tariffs offer allowances, or “free” units of the service. Behavioral research suggests that the attributes... View Details

Keywords: Pricing; Nonlinear Pricing; Discrete/continuous Choice Model; Three-part Tariffs; Free Products; Price; Consumer Behavior; Analysis; Learning; Risk and Uncertainty

2020
Working Paper

Tariff Passthrough at the Border and at the Store: Evidence from U.S. Trade Policy

By: Alberto Cavallo, Gita Gopinath, Brent Neiman and Jenny Tang

We use micro data collected at the border and the store to characterize the price impact of recent US trade policy on importers, exporters, and consumers. At the border, import tariff passthrough is much higher than exchange rate passthrough. Chinese exporters did not... View Details

Keywords: Trade Policy; Tariffs; Exchange Rate Passthrough; Economics; Trade; Policy; Inflation and Deflation; United States; China

Article

Tariff Passthrough at the Border and at the Store: Evidence from U.S. Trade Policy

By: Alberto Cavallo, Gita Gopinath, Brent Neiman and Jenny Tang

We use micro data collected at the border and the store to characterize the price impact of recent US trade policy on importers, exporters, and consumers. At the border, import tariff passthrough is much higher than exchange rate passthrough. Chinese exporters did not... View Details

Keywords: Trade Policy; Tariffs; Exchange Rate Passthrough; Economics; Trade; Policy; Currency Exchange Rate; Price; United States

12 Apr 2018
Op-Ed

Op-Ed: The Trouble with Tariffs

Stacks of shipping containers waiting to be filled with export goods. ralfgosch In March, when the Trump administration released its proposed tariffs list against China, I was eager to get a look. After all, these are the products from... View Details

Keywords: by Willy C. Shih; Manufacturing; Auto; Steel; Air Transportation; Technology; Telecommunications

November 2022
Case

Chêne Bleu: Caught in the Trade Tariff Crossfire

By: Dante Roscini, Elena Corsi and Daniela Beyersdorfer

A French wine estate faced a 25% tariff on its U.S. exports following a multi-decade-long EU-U.S. trade dispute in the aerospace industry. View Details

Keywords: Trade; Globalized Markets and Industries; Business Startups; Business Strategy; Expansion; Family Business; Distribution; Agribusiness; Taxation; Agriculture and Agribusiness Industry; Food and Beverage Industry; Aerospace Industry; France; United States; Europe

Educators

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01 Sep 2022
What Do You Think?

Is It Time to Consider Lifting Tariffs on Chinese Imports?

(iStockphoto/AvigatorPhotographer) Recently there has been talk, but no action, about eliminating some or all of the tariffs on Chinese imports that were instituted by the Trump administration. The debate involves salient arguments on... View Details

Keywords: Re: James L. Heskett

May 1989
Article

Tariffs vs. Quotas with Implicit Collusion

By: J. J. Rotemberg and Garth Saloner

Keywords: Taxation

March 1993
Background Note

General Agreement on Tariffs and Trade, The

05 May 2020
Research & Ideas

China Tariffs and Coronavirus a Double Hit to American Retailers

The double-whammy of increased tariffs imposed by the United States on China and fallout from the coronavirus could make it even more difficult for American retailers to weather the storm in the coming months—or increase pressure on them... View Details

Keywords: by Michael Blanding

02 Mar 2018
Op-Ed

Op-Ed: Trump’s Tariffs Could Harm Allies as Much as Opponents

After many on and off signals, President Donald Trump pulled the trigger March 1 and announced he would slap long-term duties on steel (25 percent) and aluminum (10 percent) imports next week. The last imposition of tariffs on steel by... View Details

Keywords: by Dante Roscini; Steel; Manufacturing

26 Jun 2019
Research & Ideas

Why the US-China Tariff Standoff Hurts American Companies More

"We are the 'piggy bank' that everyone wants to take advantage of," President Donald Trump told his 61 million Twitter followers in May, days after he hiked tariffs on $200 billion worth of Chinese goods. "NO... View Details

Keywords: by Danielle Kost; Retail; Manufacturing; Steel

2014
Discussion Paper

Do High Feed-in Tariffs for Solar PV Panels Hinder Competition (Japanese)

By: Koji Nomura and Tomomichi Amano

In Japan, feed-in-tariffs (FIT) are a key policy tool that has been deployed to produce the mass diffusion of photovoltaices (PV). In this study, we argue that this policy is unlikely to induce sustainable economic growth, which some use as a justification for FIT. We... View Details

12 Nov 2019
Working Paper Summaries

Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy

Keywords: by Alberto Cavallo, Gita Gopinath, Brent Neiman, and Jenny Tang

December 2021
Article

Trade Policy Uncertainty and Stock Returns

By: Marcelo Bianconi, Federico Esposito and Marco Sammon

A recent literature has documented large real effects of trade policy uncertainty (TPU) on trade, employment, and investment, but there is little evidence that investors are compensated for bearing such risk. To quantify the risk premium associated with TPU, we exploit... View Details

Keywords: Trade Policy; Uncertainty; Stock Returns; Risk Premium; Tariff Rates; Portfolio Analysis; Trade; Policy; Risk and Uncertainty; Stocks; Investment Return

SSRN

September 2002
Background Note

Note on WTO Disputes: Five Major Cases

By: David A. Moss and Nick Bartlett

Summarizes five major trade disputes before the World Trade Organization (WTO): (1) the Brazil-Canada aircraft dispute, (2) the European Union/United States foreign sales corporation dispute, (3) the Asian/United States shrimp and sea turtle dispute, (4) the United... View Details

Keywords: Trade; Conflict Management; Negotiation; Brazil; Canada; European Union; Asia; United States

Educators

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Research Summary

US-Cuban Economic Relations 1898-1959

Rich Sicotte is conducting joint research with Alan Dye (Barnard College, Columbia University) on the evolution of US-Cuban economic relations before the Revolution that brought Fidel Castro to power. Currently they are focusing on the consequences of the Hawley-Smoot... View Details

2024
Working Paper

Exports in Disguise: Trade Re-Routing During the U.S.-China Trade War

By: Ebehi Iyoha, Edmund J. Malesky, Jaya Y. Wen, Sung-Ju Wu and Bo Feng

Origin-specific tariffs are a common policy tool; however, critics claim that such tariffs are often circumvented by rerouting goods through intermediary countries. This study examines whether rerouting increased due to the 2018-2019 U.S.–China trade war via Vietnam.... View Details

Keywords: Trade; International Relations; Logistics; China; Viet Nam; United States

March 2018 (Revised April 2018)
Supplement

1366 Technologies: Scaling the Venture (B)

By: Joseph B. Lassiter III and Ramana Nanda

It was March 2018. Should proposed U.S. solar tariffs keep U.S.-based 1366 CEO Frank van Mierlo from starting up his 1st full-scale manufacturing plant overseas? View Details

Keywords: Entrepreneurship; Finance; Intellectual Property; Trade; Technology Industry; Manufacturing Industry; Energy Industry; United States; China; Korean Peninsula

Purchase

2017
Working Paper

Carbon Tariffs: Effects in Settings with Technology Choice and Foreign Production Cost Advantage

By: David F. Drake

Emissions regulation is a policy mechanism intended to address the threat of climate change. However, the stringency of emissions regulation varies across regions, raising concerns over carbon leakage—an outcome where stringent regulation in one region shifts... View Details

Keywords: Technology; Competition; Pollutants; Taxation; Environmental Sustainability; Globalized Markets and Industries

SSRN