Trade wars and global value chains: Shooting oneself in the foot

Par Cecilia Bellora, Lionel Fontagné
Since 2018, the US administration has implemented several measures limiting free trade with China and other countries. Using cross-country data and a general equilibrium model, this column argues that a trade war hurts not only the targeted countries but also the country imposing the tariffs.
Column first published in VOX.
Column first published in VOX.