Marjit, Sugata; Misra, Suryaprakash; Kabiraj, Tarun; … - 2026 - First draft
We consider welfare impacts of prohibitive tariffs on trading partners. Initially, there is prohibitive tariff by one country and a zero tariff by its trading partner. Thereafter, the trading partner also resorts to prohibitive tariff. We demonstrate how prohibitive tariffs by the trading...