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CEIBS Institutional Repository
Preprint . 2025
License: CC BY NC ND
SSRN Electronic Journal
Article . 2024 . Peer-reviewed
Data sources: Crossref
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The Consumption Response to Protectionism

Authors: Lin, Chen; Shan, Hongyu; Tian, Da;

The Consumption Response to Protectionism

Abstract

Despite policy aims to support income and employment, we show that U.S. households in counties more exposed to protective tariffs spend less over time. Spending declines coincide with falling wages and persist after accounting for exposure to pass-through and retaliatory tariffs. Reductions in both quantities and prices point to a demand-driven contraction. Effects are stronger when tariffs target capital rather than consumption goods, and are concentrated among working-class Americans, who subsequently cut discretionary spending. We underscore the vertical integration of U.S. and Chinese firms within tariff-targeted industries. Protectionism does not benefit domestic labor market and may risk local household welfare.

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China (People's Republic of)
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green