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Trade

  • Working Paper

    Human Capital Accumulation Across Space

    This paper studies how human capital shapes the economic geography of development. The authors propose a model in which human capital acquisition costs vary across space, and regions with higher human capital invest more in human-capital-augmenting technology.

  • Working Paper

    Globalization, Inflation Dynamics and the Slope of the Phillips Curve

    This paper studies how international trade has affected U.S. inflation dynamics. The authors develop a multi-region New Keynesian model of an open monetary union in which regional Phillips curve slopes depend on exposure to imported goods.

  • Working Paper

    Endogenous Markups and Trade Elasticities

    This paper develops a search model of international trade where buyers allocate costly cognitive attention across suppliers.

  • Special Report

    USMCA trade outlook matters for the U.S., not just for Canada and Mexico

    While the overall impact on the U.S. of a redrawn regional trade agreement with Mexico and Canada appears modest in most plausible scenarios, policies promoting regionalization differ sharply in their impacts.

  • Dallas Fed Economics

    Mitigating tariffs via USMCA may have limited 2025 price increases

    Higher tariffs do not automatically show up one-for-one in consumer prices. Price effects depend on how firms respond. Foreign exporters may cut pre-tariff prices to preserve access to the U.S. market, while domestic importers or retailers may absorb part of the increase with lower margins.

  • Dallas Fed Economics

    How USMCA compliance cushioned the 2025 tariff shock

    Despite regional sourcing and compliance costs, USMCA-based firms enjoy an edge over competitors outside North America facing higher U.S. tariffs.

  • Working Paper

    How Times Have Changed: The Impact of the 2026 Iran War on the U.S. Economy

    The 2026 Iran war has raised the question of how exposed the U.S. economy is to geopolitical oil supply disruptions. This paper develops a two-country model of the global economy with large geopolitical oil supply disruptions that distinguishes between the U.S. economy and the rest of the world.

  • Dallas Fed Economics

    Hormuz closure offsets tariff reversal; U.S. left with upside inflation risk

    A pair of important and opposing trade shocks hit the U.S. economy during the first quarter of 2026. The U.S. Supreme Court struck down a portion of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The decision on Feb. 20 lowered average U.S. import tariffs by roughly 4.8 percentage points.

  • Dallas Fed Economics

    Mexico gains from U.S.-China trade war; inefficiencies limit benefit

    A sequence of major economic and geopolitical events has reshaped the structure of global trade in the past decade. It began with U.S. imposition of tariffs on Chinese goods in 2018. The postpandemic followed with widespread disruption to global value chains—the process of manufacturing a product in stages across several countries.

  • Southwest Economy

    Ciudad Juarez retools amid job losses

    Ciudad Juarez, across the Rio Grande from El Paso, lost nearly one-fifth of its manufacturing jobs over a two-year period. The decline reflects the city’s move into higher value-added, less labor-intensive production of electronics and hardware demanded for the U.S.’s burgeoning data center build-out.