Kee, Hiau LooiXie, Enze2024-07-242024-07-242024-07-24https://hdl.handle.net/10986/41941This paper studies the factors affecting governments’ mixed use of tariffs and non-tariff measures (NTMs) as trade and industrial policies. Results based on detailed bilateral-product-level ad valorem equivalent estimates for a wide range of countries show that restrictive NTMs coexist with lower tariffs, particularly for high-income importing countries, low-income exporting countries, country pairs with deep trade agreements, and products with consumption externalities. A terms-of-trade model with externalities rationalizes the results. The model is further used to shed light on the recent Sino-EU battery electric vehicle (BEV) disputes, whereby the EU imposed NTMs on top of the tariffs on China’s BEVsen-USCC BY 3.0 IGOTARIFFSNON-TARIFF MEASURESAD VALOREM EQUIVALENTTRADE POLICIESEXTERNALITIESWorking PaperWorld Bank10.1596/1813-9450-10855