retaliate by increasing their tariffs on imports from the United States. Using a new quarterly dataset on bilateral trade for 99 …

of the bilateral tariffs and non-tariff barriers put in place by the previous administration. Moreover, incentives to … than a vice versa. Indeed, our model indicates that the supply-side reconfiguration to avoid US tariffs accounted for more …

Are retaliatiory tariffs politically targeted and, if so, are they effective? Do countries designing a retaliation …

country's relative size or relative average productivity. Furthermore, in the two-country Nash equilibrium, tariffs turn out … to be strategic substitutes. Small or poor economies set lower Nash tariffs than large or rich ones. Lower transportation … costs or smaller fixed market entry costs induce higher equilibrium tariffs and larger welfare losses relative to the case …