The Production Relocation and Price Effects of U.S. Trade Policy: The Case of Washing Machines



Aaron Flaaen, Ali Hortaçsu, Felix Tintelnot | Becker Friedman Institute

We analyze several rounds of U.S. import restrictions against washing machines. Using retail price data, we estimate the price effect of these import restrictions by comparing the price changes of washers with those of other appliances. We find that in response to the 2018 tariffs on nearly all source countries, the price of washers rose by nearly 12 percent; the price of dryers—a complementary good not subject to tariffs—increased by an equivalent amount.

Washing Machines Paper

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