Presenter: Assistant Professor He Chengyuan (School of Economics, Xiamen University)

Host: Xie Mingjia, Assistant Professor (Li Anmin Institute of Economics, Liaoning University)

Guest Introduction: Yu Li, Assistant Professor (Li Anmin Institute of Economics, Liaoning University)

Date: May 30, 2025 (Friday) 10:00 - 11:30 (Beijing Time)

Location: Conference Room on the First Floor of Wuzhouyuan, Chongshan Campus, Liaoning University

Online address: Tencent Meeting 846-7809-5157

Language: Chinese/English

Abstract:

Recent studies on the U.S.-China trade dispute suggest that the increases in U.S. import tariffs were completely borne by U.S. importers. However, using firm-level data from the U.S. Census, we find that tariff pass-through is incomplete for firms that continue importing the same product from the same country. Large importers experience higher pass-through and account for a greater share of import. Firms that import new products or source from different countries pay higher prices than those maintaining existing relationships. Thus, the observed complete pass-through in prior studies reflects import reallocation toward firms with higher pass-through or more costly new supplier relationships. To explain these patterns, we incorporate a firm-specific import price with two-sided market power into a standard importer model. We show that fixed import costs, an elastic foreign export supply, and the greater bargaining power of large U.S. importers help account for the empirical findings.

Speaker's Profile:

He Chengyuan is an assistant professor at the School of Economics, Xiamen University. His current research interests include international value chains, firm dynamics, trade dynamics, international business cycles, and inventory adjustments.