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Keywords:trade 

Understanding the Net International Investment Position

The U.S. NIIP is the difference between U.S.-owned foreign assets and foreign-owned U.S. assets. Why has the NIIP become more negative in recent years?
On the Economy

The Role of Innovations in Global Trade: The Shipping Container

A simple trade innovation—the use of shipping containers—may have contributed to the rapid expansion of global trade over the past 50 years.
On the Economy

Briefing
Tariff Update: Incorporating Recent Decisions and Deals

In March, we introduced a benchmark measure of the average effective tariff rate (AETR), using detailed trade data for 2024. We subsequently updated this analysis to reflect the tariff announcements on April 2 (commonly referred to as "Liberation Day") and April 9. This article provides another update by incorporating recent court decisions involving these tariff announcements as well as trade agreements with the U.K. and China, described later in this article in more detail.As in our previous analysis, we report AETRs by country and industry. While the industry-level AETR reflects the direct ...
Richmond Fed Economic Brief , Volume 25 , Issue 23

Speech
Policy Panel Opening Remarks at Hoover Monetary Policy Conference

St. Louis Fed President Alberto Musalem participated in a panel at the Hoover Monetary Policy Conference: Finishing the Job and New Challenges. He shared his views on monetary policy in his opening remarks at the event in Stanford, Calif.The panel also included Isabel Schnabel, member of the European Central Bank’s Executive Board; Beth Hammack, president of the Federal Reserve Bank of Cleveland; and Lisa Cook, member of the Board of Governors of the Federal Reserve System. The panel was moderated by Peter Henry of the Hoover Institution.
Speech

Discussion Paper
U.S. Imports from China Have Fallen by Less Than U.S. Data Indicate

With new tariffs on China back in the headlines, this post seeks to offer some perspective on how much China’s exports have really been affected by multiple rounds of U.S. tariffs and export restrictions over the past seven years. The key takeaway is that U.S. imports from China have decreased by much less than has been reported in official U.S. statistics. As a result, the recent tariff increase on China could have a larger impact on the U.S. economy than is suggested by official U.S. data on the China import share, especially if favorable tariff treatment for direct-to-consumer imports is ...
Liberty Street Economics , Paper 20250226

Speech
Testimony before the U.S. Trade Deficit Review Commission

Testimony before the U.S. Trade Deficit Review Commission in Dallas.
Speeches and Essays

Briefing
Can Trade Help Mitigate Risk From Weather Disruptions?

As weather-related disruptions become more frequent, firms face increasing risks to their supply chains. To safeguard against these shocks, businesses are adopting strategies to enhance resiliency and ensure that disruptions to key suppliers don't halt operations. In the 2024 working paper by several authors of this article (Juanma, Gaurav, Nicolas and Nitya), we explore how Indian firms mitigate risks from weather events by diversifying their input sources across multiple regions.Using detailed transaction data from Indian firms, we highlight multisourcing as a crucial risk-management ...
Richmond Fed Economic Brief , Volume 25 , Issue 17

Journal Article
Mexico’s productivity woes limit nearshoring, growth potential

Industrial policy reform, nearshoring and a deeper Mexico–U.S. partnership could provide tailwinds for Mexican economic growth. Whether Mexico can harness the full potential of such transformative change is less clear.
Southwest Economy

Working Paper
Gains from Offshoring? Evidence from U.S. Microdata

We construct a new linked data set with over one thousand offshoring events by matching Trade Adjustment Assistance program petition data to confidential data on U.S. firm operations. We exploit these data to assess how offshoring affects domestic firm-level aggregate employment, output, wages and productivity. Consistent with heterogenous firm models where offshoring involves a fixed cost, we find that the average offshoring firm is larger and more productive than the average non-offshorer. After initiating offshoring, firms experience large declines in employment (46.2 per cent), output ...
International Finance Discussion Papers , Paper 1124

Mexico seeks to solidify rank as top U.S. trade partner, push further past China

Mexico's emergence followed fractious U.S. relations with China, which had moved past Canada to claim the top trading spot in 2014. The dynamic changed in 2018 when the U.S. imposed tariffs on China’s goods and with subsequent pandemic-era supply-chain disruptions that altered international trade and investment flows worldwide.
Dallas Fed Economics

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