The Pros and Cons of Globalization - Global & European Dynamics -
We have strong evidence that globalization has had a positive impact on the GDP of advanced and emerging economies.
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There is a strong current the obscure the positive effects of globalization and exploit the negative ones. The most prominent, but by far not only example, are the rhetoric and policies of the U.S. administration. Against all evidence, it depicts globalization as a zero-sum game, which the United States have been losing for too long. Its own protectionist measures provide a textbook example of the negative and self-defeating effects of rolling back globalization via tariffs. New <anchor>research</anchor> shows that by the end of 2018, U.S. consumers had lost a total of $ 1.4 billion per month because of the trade war with China.
DP13564 The Impact of the 2018 Trade War on U.S. Prices and Welfare | CEPR
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# DP13564 The Impact of the 2018 Trade War on U.S. Prices and Welfare

- [Mary Amiti](/about/people/mary-amiti) [Stephen Redding](/about/people/stephen-redding) [David Weinstein](/about/people/david-weinstein)
2 Mar 2019

This paper explores the impacts of the Trump administration’s trade policy on prices and welfare. Over the course of 2018, the U.S. experienced substantial increases in the prices of intermediates and final goods, dramatic changes to its supply-chain network, reductions in availability of imported varieties, and complete passthrough of the tariffs into domestic prices of imported goods. Overall, using standard economic methods, we find that the full incidence of the tariff falls on domestic consumers, with a reduction in U.S. real income of $1.4 billion per month by the end of 2018. We also see similar patterns for foreign countries who have retaliated against the U.S., which indicates that the trade war also reduced real income for other countries.

£6.00

###### Citation

Amiti, M, S Redding and D Weinstein (2019), ‘DP13564 The Impact of the 2018 Trade War on U.S. Prices and Welfare‘, CEPR Discussion Paper No. 13564. CEPR Press, Paris & London. [https://cepr.org/publications/dp13564](https://cepr.org/publications/dp13564)

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