Trump Tariffs Primarily Hit Multinational Supply Chains, Harm US Technology Competitiveness

Mary E. Lovely (PIIE) and Yang Liang (Syracuse University)

Policy Brief
18-12
May 2018
Photo Credit: 
REUTERS/Jonathan Ernst

The Trump administration’s Section 301 tariffs are an ineffective response to US concerns about China’s high-technology aspirations. They are a prime example of 20th century tools aimed at the knowledge-embodying trade flows of the 21st century. Instead, these tariffs disadvantage American producers and harm US allies operating in East Asia while missing the mark on penalizing Chinese domestic firms that may have misappropriated US and other advanced economies’ technologies.

Data Disclosure: 

The data underlying this analysis are available here.