Heterogeneous impacts of the Section 301 tariffs: Evidence from the revision of product lists

Abstract In each of the three waves of the Section 301 tariffs on Chinese imports, the US government exempted some products on the originally proposed list from additional duties. Using these exempted products as the counterfactual, we identify modest but heterogeneous impacts of the tariffs on the value of US imports from China. We find a complete pass‐through for the first and second waves of tariffs. However, unlike in previous studies, we estimate a very limited tariff pass‐through of the third wave of tariffs. Finally, we find little import diversion for the US and significant export diversion for China.