Miaojie Yu asked the authors to consider the effects not only of China retaliating against the United States but also China opening up to other countries like those in ASEAN. He also pointed out that he similarly found negative welfare effects on the Philippines and positive welfare effects on Singapore in the U.S.-China trade war scenario in his paper, which used the Caliendo-Parro model.1

Chalongphob Sussangkarn asked the authors to explain the underlying mechanisms driving the results. He also pointed out that in the long run, it is not only tariff effects that matter but what happens to the current account balance. This is because the adjustment required to get the current account in balance in the long run will swamp any effects arising from the direct effects of higher tariffs. He also asked about what will happen to tariff revenues.

Nur Ain Shairer had several questions. She asked...

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