Question

Donald Trump imposed tariffs on steel imports. Consider the economic arguments in favor and against this policy. How could other countries respond?

Answer 1

Solution :- There Are various arguments in Favour and Against of this Policy

Tariffs Imposed on Steel Imports Simply means to increase the Price of the Imported Steel and this may lead to decrease in Import of Steel and Becomes Favourable to Domestic Suppliers It helps to encourage domestic american products and also helpful in GDP Growth. Another one benefit is that if the Goverment Imposed the Tarrif it may lead to Increase in Government Revenue .

.While in case of Against this policy as we see government imposed tarriff then in return to it other country may also charge tariff on imported Products and Also If Government has Imposed Tariff then the Cost of the Imported Product increased which leads to reduce the choice among the products of the customer.

On the Basis of it Other Countries also Responded against it by imposing tariff on other products which may lead to Dissolving the relations between the countries And also the Suppliers now reduce the Quality of the Product to Compensate that tariff amount from the cost.