Episode 14. Who Really Pays for Tariffs?

Ever wondered who actually bears the cost when tariffs rise? In this episode, we unpack groundbreaking research by Alberto Cavallo, Gita Gopinath, Brent Neiman, and Jenny Tang on how tariffs imposed during recent US-China trade disputes have impacted prices at the border—and in stores.

We explore how tariffs affect import prices, retail margins, and consumer costs. Do importers fully pass tariffs to consumers, or do retailers absorb some costs? Why are tariffs more readily passed to consumers than currency exchange fluctuations? Join us as we untangle the economic realities of tariffs in global trade.

📖 Citation: Cavallo, Alberto, Gopinath, Gita, Neiman, Brent, & Tang, Jenny. 2021. "Tariff Pass-Through at the Border and at the Store: Evidence from US Trade Policy." American Economic Review: Insights 3(1): 19-34. [https://doi.org/10.1257/aeri.20190536]

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Let's uncover the hidden impacts of trade policies together, one digestible episode at a time!