How exporters neutralised an increase in tariffs

Bibliographic Data

ID21543033
AuthorsAsier Minondo (0000-0001-8566-1278, Deusto Business School University of Deusto Donostia‐San Sebastián Spain, corresponding author)
Year2024
Volume47
Issue3
Pages1274-1296
Publication date2024-03-01
Open AccessYes
TypeARTICLE
VenueWorld Economy (JOURNAL)
Journal identifiersISSN: 0378-5920 • E-ISSN: 1467-9701
PublisherWiley (PUBLISHER • GB)
DOI10.1111/twec.13492
OpenAlexW4386136848
LanguageEN
References cited20

I use the unanticipated and large additional tariffs the US imposed on European Union products due to the Airbus‐Boeing conflict to analyse how exporters reacted to a change in trade policy. Using firm‐level data for Spain and applying a difference‐in‐differences methodology, I show that the export revenue in the US of the firms affected by the tariff hike did not significantly decrease relative to the one of other Spanish exporters to the US. I show that Spanish exporters were able to neutralise the increase in tariffs by substituting Spanish products with products originated in countries unaffected by tariffs and shifting to varieties not affected by tariffs. My results show that tariff avoidance is another margin exporters can use to counteract the effects of a tariff hike

Commercial policy · Customs union · Economics · European union · International economics · International trade · Revenue · Tariff · Global trade and economics · International Business and FDI · World Trade Organization Law · Finance

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