Title* Dutch trade and welfare implications of tariff reform, A General Equilibrium Analysis

We study the role of import tariffs on the trade flows and welfare levels of the Netherlands, surrounded by eight of its biggest trading partners. We extend the general equilibrium Heckscher-Ohlin model and run various numerical simulations. With the Netherlands modeled as a relatively capital abundant country, our cases see Dutch trade flows commonly divert according to Heckscher-Ohlin theorems. Complete elimination of Dutch import tariffs shows welfare and net exports to increase by 0.56% and 54.98% respectively. Prices converge as trade intensifies in all cases. Factor price equalization does not completely materialize as insufficient implicit factor trade takes place.