Abstract
ABSTRACT This paper evaluates the impact on the tire price of China Tire Safeguard implemented by the US government for three years from 2009 to 2012. We find that the safeguard tariffs have been fully reflected onto the unit value of imported tires from China, which implies that tire exporters from China have not absorbed the tariff in their original export price. Interestingly, we also find that the unit value of imported tires from the Rest of the World rose during the safeguard period even though their products were not subject to tariffs. At the same time, domestic US tire producers increased the price significantly. However, such price increases were temporary: both unit values (from China and the Rest of the World) and US producers’ price gradually declined when the safeguard tariff expired.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
