2023/02/01 by Asier Minondo, Minondo, Asier
Economics, Econometrics and Finance · Social Sciences · #FOS: Economics and business #General Economics (econ.GN) #Global trade and economics #Merger and Competition Analysis #World Trade Organization Law
paper · pdf · doi:10.48550/arxiv.2302.00417
openalex publication_date 2023/02/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
I use the unanticipated and large additional tariffs the US imposed on European Union products due to the Airbus-Boeing conflict to analyze how exporters reacted to a change in trade policy. Using firm-level data for Spain and applying a difference-in-differences methodology, I show that the export revenue in the US of the firms affected by the tariff hike did not significantly decrease relative to the one of other Spanish exporters to the US. I show that Spanish exporters were able to neutralize the increase in tariffs by substituting Spanish products with products originated in countries unaffected by tariffs and shifting to varieties not affected by tariffs. My results show that tariff avoidance is another margin exporters can use to counteract the effects of a tariff hike.