Retaliatory tariffs on U.S. produce could lead to uncertain trade outcomes.
The researchers used a model to study how different factors affect trade policies. They looked at how changes in export and import elasticities can impact trade outcomes. By analyzing specific trade data, they found that uncertainties in these elasticities can lead to uncertain policy results. In particular, they examined the effects of retaliatory tariffs on U.S. vegetables, fruits, and nuts sectors.