Staehler, F.Boddin, D.2023-12-102023-12-102024Canadian Journal of Economics, 2024; 57(2):430-4580008-40851540-5982https://hdl.handle.net/2440/140139First published: 18 April 2024This paper discusses how import tariffs interact with transport prices in episodes of trade liberalization. We develop a model of a transport industry that operates under imperfect competition and economies of scale. Double marginalization due to market power reduces the effects of trade liberalization, while a larger trade volume may support them due to economies of scale. We use a large data set of maritime transport data and combine it with tariff data to find that economies of scale beat market power: a decline in the tariff implies a decline in freight rates.en© The Authors. Canadian Journal of Economics/Revue canadienne d’économique published by Wiley Periodicals LLC on behalf of Canadian Economics Association. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.Import tariffs; trade liberalization; trade costs; transport costsJournal article10.1111/caje.127082023-12-07678337Staehler, F. [0000-0002-5120-0286]