A dynamic multi-country model with nonhomothetic preferences and complementary sectors implies a 20 percentage point U.S. manufacturing tariff raises the manufacturing value-added share by about one percentage point and U.S. welfare by 0.43 percent, with an optimal unilateral tariff of 20.9 percent.
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A dynamic multi-country model with nonhomothetic preferences and complementary sectors implies a 20 percentage point U.S. manufacturing tariff raises the manufacturing value-added share by about one percentage point and U.S. welfare by 0.43 percent, with an optimal unilateral tariff of 20.9 percent.