WTO negotiations deal predominantly with bound - besides applied - tariff rates. But, how can reductions in tariffs … from the real options literature; doing so we highlight the important role of bound tariffs at the extensive margin of … trade. We find that bound tariffs are more effective with higher risk destination markets, that a large binding overhang may …

to the elimination of tariffs and cuts in non-tariff measures by 25%, is in the range of 1% to 4% of initial consumption …, depending on the parameterization. The welfare gain increases in the elasticity of substitution between domestic and foreign …

The trade war initiated by the Trump administration is the largest since the US imposed the Smoot-Hawley tariffs in the …. Our results highlight the political salience of the trade war: US trade war tariffs boosted Trump’s support but foreign … retaliation hurt Trump. In particular, the pro-Trump effects of US trade war tariffs were crucial for Trump crossing the recount …

negative direct effect of US tariffs on US imports from China, but (2) do not find evidence for significant short-run trade …