The Uneven Effects of Chinese Tariffs

Kim J. Ruhl

Executive Summary:

As part of the escalating trade war, the Chinese government increased substantially the tariffs it levies on a range of products exported from the United States. Trade policy is applied at a national level—a good entering China from the United States is tariffed the same regardless of where it was produced within the United States. The United States, however, is geographically diverse and the effects of the Chinese tariffs fall unevenly on different parts of the country. In early 2018, the United States levied tariffs against solar panels, washing machines, steel and Aluminum—beginning the ongoing trade war.

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