Li Lei | How are tariffs shared? —— An analysis of the price transmission effect based on China's im

Recently, the 2021 "Academic Symposium on International Trade Disputes and the Reconstruction of Globalization" was successfully held online.Li Lei, an assistant professor at the University of Mannheimattendedthe third sub - forum on the special topic of trade disputesand shared an article co - written with her collaborators (see the figure below) titled"How are tariffs shared? —— An analysis of the price transmission effect based on China's import data"of the article.

Article author

Li Lei graduated with a doctorate from the School of Economics and Management at Tsinghua University. Since 2019, she has been an assistant professor in the Department of Economics at the University of Mannheim in Germany. Her research interests include international trade and labor economics.

Li Lei

In the article co - written with her collaborators, Professor Li Lei mentioned thatthis articlequantitatively measured the price transmission effect of China's additional tariffs on the United States from 2018 to 2019 based on China's import data. The research shows that Chinese importers only bear 70% - 90% of the additional tariffs, and the remaining 10% - 30% is borne by foreign exporters. This is different from the phenomenon found in the literature that American importers fully bear the additional tariffs imposed by the US government (Amiti et al., 2019; Fajgelbaum et al., 2020). Further, the article finds that there are significant differences in the tariff sharing ratios of different commodities, and the main reason is the different market concentration of suppliers. The above results indicate that the formulation of counter - measures in trade frictions needs to consider the different tariff price transmission effects of various commodities and adopt classified policies.

Jiao Yang

Jiao Yang, an assistant professor at the Fanhai International School of Finance at Fudan Universitysummarized the article from three aspects. First, the problem studied in the article can be summarized as: Who bears the additional tariffs imposed by China on the United States in the trade war? American exporters or Chinese importers? Second, the research findings in the article are: 1. 70% - 90% of the tariffs are borne by Chinese importers, and 10% - 30% is borne by American exporters. 2. In terms of heterogeneity, the higher the market concentration of the supply side, the more the exporters bear. Finally, Teacher Jiao Yang also pointed out that this article has the following innovative points: 1. Existing literature mainly examines which parties bear the additional tariffs imposed by the United States on China. This article emphasizes the impact of China's counter - tariffs on the United States. 2. It adopts the perspective of market concentration.

(Volunteers compiled and wrote based on the live - broadcast content)

Special topic of trade disputes andGuest scholars at the meeting