The ongoing trade war between China and the United States significantly impacts both nations and their internal regions, yet few studies have explored these localized effects. Utilizing a multi-region and multi-sector trade model that encompasses 50 US states and 43 economies, alongside re-estimated elasticities, we quantify the welfare and real wage changes resulting from tariff hikes by both the US and China with the 2017 tariff data. Our findings indicate that China suffered a larger aggregate welfare loss than the US after two rounds tariff increases, primarily due to reduced trade volumes...
