This paper shows that the outcome of trade wars for tariffs and welfare will be affected by the monetary policy regime …, trade wars are relatively mild, with low equilibrium tariffs and small welfare costs. Discretionary monetary policies imply … much higher tariffs, high inflation rates, and substantially larger welfare costs. We quantify the effects of a global …

Import tariffs tend to be higher for final goods than for inputs, a phenomenon commonly referred to as tariff …-maximizing tariffs are uniform across sectors. We show that tariff escalation can be rationalized on efficiency grounds in the presence … up the chain for final-good tariffs, input tariffs may drive final-good producers to relocate abroad, mitigating their …

decline in import growth. We then construct measures of export exposure to import tariffs by linking tariffs paid by importing …

rate. As a result, optimal capital controls can be larger when used in conjunction with optimal tariffs in specific cases …