Impacts of Chinese tariff on world soybean markets

Ethan Sabala, Stephen Devadoss

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

China targeted U.S. soybeans, among other commodities, for its recent retaliatory tariff chiefly because of the sheer volume of its imports from the United States. We develop a theoretical and empirical spatial equilibrium trade model to analyze the effects of the 25% Chinese soybean tariff on the United States, China, and nine other major soybean trading regions. Both the United States and China incur welfare losses as a result of the tariff, but Brazil experiences a large net gain. The United States mitigates some of its losses by reallocating trade to other importers, but at a cost to smaller exporters such as Canada.

Original languageEnglish
Pages (from-to)291-310
Number of pages20
JournalJournal of Agricultural and Resource Economics
Volume44
Issue number2
StatePublished - May 2019

Keywords

  • Spatial equilibrium model
  • Trade
  • Welfare

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