The Impact of Trade Barriers and Countermeasures

In 2018, the Trump administration insisted on launching a trade war with China. In order to better study the possible impact of this trade war, a partial equilibrium analysis method was used to analyze the classic Sino-US tire protection case. The study found that: When the United States is a small trading country, the imposition of tariffs will cause a net loss to its overall social welfare, while when the United States is a large trading country, the impact of tariffs on its overall social welfare is uncertain. Through the stock and futures market's response to tariffs imposed by the United States, it is concluded that as a major trading country, the benefits of tariffs imposed by the United States are at the expense of other domestic industries and the interests of other countries. In response to the above conclusions, measures are proposed from the perspective of the government and enterprises