Question

1. The United States just imposed a tariff on aluminum imports.

-What would you expect this to do to the employment of workers in the American

aluminum industry?

-What would you expect the aluminum tariff to do to the output of the American beverage industry? What does that imply is likely to happen to employment in this industry?

-American farmers have expressed concern about the effects of the new tariffs on farm exports. How might you explain this?

Answer 1

Tariff is the type of tax charged on import of goods . On charging this tax , the government mean to control the imports of those product , there by increasing the price of those product , which will lead to decrease in demand .

Aluminum is the raw material for many indutry hence is is used for packaging food items , manufacturing utensils , wires , planes etc there by import of these goods are very necessary for the industry to manufacture their product finished goods .

Effect - It will surely lead to unemployment as less raw material will be available at higher price making the industry to remove some of the man piwer from their industry .

Beverage industry will not be affected to the much extent as those indurtry donot have any connection with the alluminium but how ever to some extent it will be effection as every indtry uses aluminum foil for the packaing etc perpose..

New tarrif on other imports items will sure lead to high price of those product and it those products are raw material then it will lead to slow in the economy activity of that nation .