Sino-U.S. trade frictions impact economy unevenly, affecting consumption and production.
The article examines how the trade tensions between China and the U.S. impact their economies using a special model. Tariffs on goods affect different sectors, leading to changes in consumption, investments, prices, and production. The impact of the trade frictions is different for each country, with the economy becoming less volatile as trade dependence decreases. The findings show that the effects of the tariffs are not the same for both countries.