Research Study on Tariff Burden Distribution in European Wine Imports

The incidence of tariffs on producers, in the form of lower pre-tariff prices, and consumers, in the form of higher tariff-inclusive prices, is a long-standing issue in international economics.

While economic theory suggests various possibilities, empirical evidence on the distribution of tariff burdens across the supply chain, from producers through distributors to retailers, is limited.

In Who Pays for Tariffs Along the Supply Chain? Evidence from European Wine Tariffs (NBER Working Paper 34392), Aaron B. Flaaen, Ali Hortaçsu, Felix Tintelnot, Nicolás Urdaneta, and Daniel Xu