CEPII, Recherche et Expertise sur l'economie mondiale
Shooting oneself in the foot? US trade policy coping with Global Value Chains
According to Cecilia Bellora & Lionel Fontagné estimates, the measures already implemented by the trade war would cause significant value-added losses to China (USD 91 billion in the long run), but also to the United States (62 billion), due to the intertwining of global value chains. As in any war, imposing losses on an enemy comes at a high cost. If the tariff war were to escalate, German industry would pay a heavy toll.
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