Foreign exporters absorbed nearly half of the 2025 US tariff shock

When the US imposed sweeping tariff increases in 2025, most economic forecasters predicted a sharp rise in consumer prices and significant import disruption. Instead, retail

EU barriers to scaling up: The case of fragmented product markets

European firms tend to be smaller and less productive than US firms. Qualitative and survey-based evidence suggests that one key reason is the remaining barriers

Tariff reciprocity and the True Cost of Protection Index

Effective tariff index comparisons are spotlighted in media reports on trade wars and trade talks. This column argues that the effective tariff index is inadequate

Tariffs and US dollar depreciations: Not so surprising after all

To many, the US dollar depreciation following the ‘Liberation Day’ tariff announcement on 2 April 2025 defied conventional wisdom. However, open-macro models predict that the

Recent patterns in global risk behaviour in financial markets

Following the US tariff announcements in early April, the US dollar strongly depreciated while US Treasury yields rose. This column zooms in on the April

EU jobs and US trade: Navigating change

Trade uncertainty between the EU and the US – driven by the announcement of new tariffs and a volatile global economy – has raised concerns