Story perspectives

Study Reveals U.S. Importers' Dominance in Trade War

10/25/2025

Summary

Story summary

A study by Vanessa Alviarez and colleagues finds that during the 2018 trade war, dominant U.S. importers such as Walmart and Apple wield greater bargaining power than foreign suppliers.
This bargaining power allows them to shift tariff costs back onto exporters.
Foreign firms absorb much of the burden.
Larger U.S. buyers face smaller price increases.
The findings suggest policymakers should consider bargaining power in trade interventions.

History

Historical Context

The U.S.-China Trade War began in January 2018 when President Trump imposed tariffs to address perceived unfair trade practices, including intellectual property theft. By August 2019, American tariffs on Chinese goods surged to 24.3%, while China's retaliatory tariffs reached 20.7%. This conflict reshaped global trade dynamics, impacting major corporations like Walmart and Apple, and highlighting the influence of large U.S. importers on international trade policies.

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Story summary

A study by Vanessa Alviarez and colleagues finds that during the 2018 trade war, dominant U.S. importers such as Walmart and Apple wield greater bargaining power than foreign suppliers.
This bargaining power allows them to shift tariff costs back onto exporters.
Foreign firms absorb much of the burden.
Larger U.S. buyers face smaller price increases.
The findings suggest policymakers should consider bargaining power in trade interventions.

1 / 2