Trump’s trade war is squeezing US profits – IMF paper

Retailers kept prices unchanged and exporters cut theirs, Gita Gopinath and co-authors find

Gita Gopinath
World Economic Forum

President Donald Trump‘s trade war has squeezed profit margins for US retailers and exporters, a paper published by the International Monetary Fund finds.

The fund’s chief economist Gita Gopinath and co-authors use micro data on prices to understand how economic agents respond to tariffs. They aim to “characterise the reaction of importers, retailers and exporters to US trade policy since 2018”.

They find that many US retailers have shouldered the increased cost of imported goods by not

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