Question

Trade Wars Through Steel Tariffs

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Please read the Trade Related articles under "Other Readings" for this Week, before you answer the following questions. Remember to use concepts learned in Chapter 3 in your responses. ANSWER ALL PARTS OF THE QUESTION. You will lose points if you do not address all questions in this Discussion Board. NORMATIVE POSTS AND LATE POSTS WILL NOT BE GRADED.

Wikipedia, Newspaper Articles, Blogposts and Opinion articles online are NOT VALID REFERENCES. 5 point penalty for for each invalid reference.

We all have different emotions about the current President and his policies. I want you to suspend those emotions while you answer these questions. We are looking at this topic as Economists and regardless of emotion, we will complete our analysis based on facts and theories rather than emotions and feelings.

1. Our President has recently imposed Tariffs on Steel Imports. Find out what Steel Tariffs mean and explain in a couple of sentences what they are.

2. Which specific groups of population in the US will benefit from Steel Tariffs and which groups will lose out?

3. Will Steel Tariffs make Steel Products Cheaper or more expensive? Why or Why not? Use Economic analysis to respond.

4. How will countries that export Steel to the US react to these Tariffs?

Can you help me with this disscussion ? 300-400 words.

Answer 1

soln.:

Tariff imposed on steel imports means to put taxation on the import of steel this taxations will somewhere discourage the importers and force them to rely on domestic manufacturers this type of import restrictions are the examples of protectionist policy against international traders.

The steel industry an heavy industry and to rely on imports for the heavy industry is a type of security threat.as the output of this industry perform a vital role in the growth of the country, as steel is used in buildings, ships, planes, military equipment so this industry needs to be protected.   

By these types of policies government's main objective is to encourage domestic manufacturing which will further make addition to the national income and will grow the national employment.

This tariff order policy also waive those importers who are ready to set up their plants in the United States as this will rise the employment rate in the state. But this type of Tariff orders also face counter attack from the close related economy and may affect the bilateral relationship, many countries consider this policy as a threat to the close personal relationship. Thus US also offer ‘Reciprocal tax’ which is a type of tax canceling system with each other while trading bilaterally. So may be some nations reduce their exports to the United States but this will not hamper the industrial or trading relationship among the countries.

Whatever the situation is US economy will be benefited as it encourages the local industries to produce more which further leads to the employment generation, but this is also true in the short run may be the price of steel in the US will go rise as local industrialist will takes time to change their production capacities as per the changed output supply pattern, and in the long run all will be good employment will go rise, industrial output will grow,

So this type of tarrifs are to be treated as a positive steps in the growth of economy to make it self-reliant.