“Noon Sunshine-Young Scholars Seminar” is a regular academic exchange platform held by School of Finance. It aims to offer valuable occasions of communications among scholars in our college, between teachers and students, the domestic and the oversea. In this semester, we keep our original intention, set off for a new voyage. We will devote ourselves to fostering the academic atmosphere in the college, and promoting the academic level for both teachers and students.

The first session of “Noon Sunshine-Young Scholars Seminar” for the Spring Semester in 2024 is arranged as follows:

Lecture topic：The Trade War and Household Consumption

Keynote Speaker: Tian Da

Commentator: Wang Xiaxin

Date：Thursday, March 7th, 2024

Time：12:00-13:00

Lecture Venue：Room 116, School of Finance

Abstract

We study the impact of the trade war between U.S. and China on U.S. households consumption. Our analysis reveals that households in counties subjected to a substantial surge in protective import tariffs on Chinese goods exhibit lower consumption levels compared to those in counties with marginal tariff increases. Quantities and prices are also lower suggesting that the lower level of consumption is more driven by contraction in demand rather than decrease in supply. The working-class demographic emerges as more adversely affected, prompting consumption adjustments in luxury goods instead of necessities. The lower consumption level is linked to diminished wages resulting from the trade war, particularly pronounced in counties where import costs of upstream industries faced larger rises. Our findings underscore the evolving nature of U.S.-China trade relations, emphasizing their complementary nature over competitiveness. Contrary to expectations, increased import tariffs do not necessarily benefit local firms, instead posing a risk of supply chain disruptions.