Recent evidence shows that imports of critical products can be concentrated on a small number of supplier countries. Such supplies are therefore vulnerable to disruption, whether because unfriendly governments seek to weaponize dependency or for other reasons. In a laissez-faire equilibrium,...

The new US administration has a clear agenda of reducing imports to the US and attract FDI by reducing tariffs and using the proceeds for supporting investment in the US. This paper uses a dynamic two country US vs RoW model where monopolistically competitive firms make export and FDI decisions....

On April 2, 2025, President Donald Trump announced a wide-ranging set of "reciprocal tariffs" against many of its trading partners. The calculation of these tariffs have elicited a largely negative reaction in part due to the simple formula used to calculate them. In this note, I provide a model...

As a growing number of countries face rising tariffs in 2025, stablecoins may be the answer to geoeconomic fragmentation by providing solutions that enhance trade efficiency in response to protectionist policies and regional alliances. While the United States leverages stablecoins to reinforce...

A major section of the existing literature on strategic trade policy, following a partial equilibrium framework, observed that imposition of tariff by the domestic country leads to a rise in their wage level. Analysis on the impact of strategic trade policy intervention (tariff) on wages and...