New Department Working Paper: Pau Pujolas

We have a new working paper from Pau Pujolas!

How Should Canada React to the Looming U.S. Trade War?

Pau Pujolas is an Associate Professor for the Department of Economics, as well as the graduate placement officer. His research interests are in international economics and macroeconomics.

His working paper is titled, “How Should Canada React to the Looming U.S. Trade War?“, with Jack Rossbach.

Abstract

We apply the quantitative theory in Pujolas and Rossbach (2024), which determines optimal tariff rates in a multi-country, multi-sector general equilibrium model with input-output linkages and services trade, to a hypothetical trade war between the United States and Canada. While the United States can “win” a trade war if its tariffs against Canadian products are optimally chosen, a 25% across-the-board tariff met with optimal retaliatory tariffs by Canada causes the United States to also lose the trade war. Canada loses the trade war in all the scenarios we consider. However, the United States gains substantially more from engaging in a trade war with China than with Canada.

For the full set of working papers, visit RePEC/ideas.

You can stay up to date with Pau, through his professional website.