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Groningen Growth and Development Centre

Faculteit Economie en Bedrijfskunde

Limited lobby for a Trump-led trade war

Marcel Timmer (Foto: Jeroen van Kooten)
Marcel Timmer (Foto: Jeroen van Kooten)

In an interview with the (Dutch) Financieel Dagblad, Marcel Timmer argues that the current era of production fragmentation makes it less likely that a trade war will flare up: "Lobbying for protection from foreign competition only makes sense if a producers relies nearly entirely on domestic production and inputs." If, on the other hand, exporters are also major importers of foreign-produced materials and parts, the benefits from trade protection for some producers is quickly outweighed by costs for others.

Tags: WIOD, Press