The Production Relocation and Price Effects of US Trade Policy: The Case of Washing Machines
Перемещение производства и влияние торговой политики США на цены: пример стиральных машин
2020-06-30
SCID: 54.1/eg6jjrp8
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US trade policyantidumping dutiesimport restrictionsproduction relocationtariff elasticity of consumer prices
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Abstract (AI)
We estimate the price effect of US import restrictions on washers. The 2012 and 2016 antidumping duties against South Korea and China were accompanied by downward or minor price movements along with production relocation to other export platform countries. With the 2018 tariffs, on nearly all source countries, the price of washers increased nearly 12 percent. Interestingly, the price of dryers—not subject to tariffs—increased by an equivalent amount. Factoring in dryer prices and price increases by domestic brands, the 2018 tariffs on washers imply a tariff elasticity of consumer prices of above one. (JEL F13, F14, F23, L68, 019, P33)
Key Findings
1
Dryer prices increased by an equivalent amount despite dryers not being subject to the tariffs.
2
Including dryer prices and price increases by domestic brands, the 2018 washer tariffs imply a consumer-price tariff elasticity above one.
3
The 2012 and 2016 antidumping duties on washers from South Korea and China caused downward or minor price changes while production relocated to other exporting countries.
4
The 2018 tariffs applied across nearly all washer source countries increased washer prices by nearly 12 percent.
Research Object
US washing machine imports and the associated domestic washer and dryer markets
Research Subject
The effects of US antidumping duties and tariffs on production relocation and consumer prices, including cross-product price effects and tariff elasticity
Publication Details
Publication Date
2020-06-30
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