Rodríguez-Clare, Andrés; Teti, Feodora; Ulate, Mauricio; … - 2025 - First version: April 22, 2025, this version: September 30, 2025
We use detailed tariff data and a dynamic trade and reallocation model with downward nominal wage rigidities to quantitatively assess the economic consequences of the recent increase in U.S. import tariffs and the responses of its trading partners. Higher tariffs trigger an expansion in U.S....