Abstract:

Production processes are often no longer confined to a single country; supply chains can be fragmented across great distances. By contrast, tariffs are often used by individual countries to protect certain industries. In new research, which studies the effects of US antidumping duties applied against China, Chad P. Bown, Paola Conconi, Aksel Erbahar and Lorenzo Trimarchi find that these protectionist measures can have an effect on supply chains, with firms in downstream industries suffering from increasing production costs and falling employment, wages, sales, and investment.