When do people care about relative gains in trade? Much of the international relations scholarship—and much of the political rhetoric on trade—would lead us to expect support for a trade policy that benefits ourselves more than it benefits others. Yet, a large interdisciplinary literature also points to the prevalence and importance of other-regarding preferences, rendering the conventional wisdom contestable. We investigate whether and how relative gains influence trade preferences through an original survey experiment in the midst of the China–US trade war. We find that in a win-win scenario, relative gains shape trade opinion: if both sides are gaining, people want to gain more than their foreign trade partner. However, these considerations are offset in a win-lose scenario where the other side is losing out. Relative-gains considerations causally affect opinion on trade, but not in a “beggar-thy-neighbor” or even a “beggar-thy-rival” situation. These findings contribute to our understanding of the role of relative gains in international relations and provide the first experimental evidence that relative-gains considerations can be offset by other-regarding preferences in international trade.

There has been a lively debate about the economic and cultural-based drivers of support for populism. This article argues that economic concerns matter, but that they are realized through the relative gains and losses of social groups. Using new survey items in a large representative survey administered in Britain, it shows that citizens' economic assessments of the ethnic minority out-group – in relation to the group's situation 12 months ago and to assessments of the economic conditions of the white British in-group – are a predictor of support for Brexit. The results, which are robust to prior referendum vote, immigration attitudes and cultural sentiment, extend across income groups and national identity strength. Extending the analysis to a comparison of geographic in- and out-groups between local communities and London lends additional support to the argument. The implications of relative group-based economics are important for understanding Brexit and the economic sources of support for populism more broadly.