large reductions in import tariffs as an exogenous shock to the competitive environment, I also find that increased foreign …

imposed tariffs at both the raw-material (RM) and finished-goods (FG) level. We show that an increase in the average RM tariff … in the increase of FG tariffs: an overflow effect, present when demand is above an overflow threshold, that encourages … presence of domestic competition can lead to more (less) reshoring. Although higher tariffs hurt the global firm's profit, the …