We propose a multi-country model with occupational choice, heterogeneous firms, unemployment, and revenue-generating tariffs to study the aggregate and distributional consequences of tariff wars in a unified framework. Motivated by the 2018 global tariff war, we calibrate the model to fit a...

We propose a multi-country trade model with occupational choice, heterogeneous firms, and unemployment to analyze the effects of welfare-maximizing tariffs on welfare, jobs, and top incomes. Consistent with empirical evidence, the model features an employer size-wage premium, complete tariff...