US trade - Global Business and Finance Magazine

A new modelling approach for evaluating the Trump tariffs

GLOBAL BUSINESS AND FINANCE MAGAZINE
June 30, 2025
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There is currently much discussion about President Trump’s tariffs, the US trade deficit, and its causes and impacts, but little in the way of economic modelling to inform the discussion. This column uses a theoretical model of international trade to demonstrate that the US trade deficit might be regarded as the consequence of rational market […]

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Tariffs, the dollar, and equities: High-frequency evidence from the Liberation Day announcement

GLOBAL BUSINESS AND FINANCE MAGAZINE
April 17, 2025
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On 2 April 2025, the US announced tariffs on most of its trading partners, creating a major trade policy shock to the world economy. This column shows that the US dollar depreciated on impact, rather than appreciating as expected based on standard theory and prior evidence. The authors argue that this unusual transmission impact of […]