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Trade diversion effects of the US–China trade war on Vietnam

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  • Bo‐Young Choi
  • Thuy Linh Nguyen

Abstract

This paper empirically examines the US–China trade war that began in mid‐2018, focusing on the impact on a third country, Vietnam. Using regression analysis, we found that while the trade war had a negative impact on US imports from China for all targeted products, there was a partial offset from increased imports from other countries. Notably, US imports from Vietnam experienced a sharp increase, particularly after the third round of US import tariffs on Chinese goods. Additionally, our research reveals that the four rounds of tariff escalation affected US imports from China differently depending on their end‐use and technology intensity.

Suggested Citation

  • Bo‐Young Choi & Thuy Linh Nguyen, 2023. "Trade diversion effects of the US–China trade war on Vietnam," Pacific Economic Review, Wiley Blackwell, vol. 28(4), pages 570-588, October.
    • Handle: RePEc:bla:pacecr:v:28:y:2023:i:4:p:570-588
    DOI: 10.1111/1468-0106.12435
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    References listed on IDEAS

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