Why does the United States impose severe tariffs on China? How does it affect the US...

Why does the United States impose severe tariffs on China? How does it affect the US consumers? give at least 2 or 3 facts

Expert Solution

As states by the president Trump and various economic authorities , China was violating the intellectual propoerty rights. Also , imposing the tariffs onto the imports coming from China will ensure that more and more encouragement is given to the domestic industries rather than being dependent on China. This will reduce the imports , increase domestic production , and make the economy richer by rsstricting the leackage.

Two impacts on consumers are -

1 - Consumers will have to pay higher price now for the products which are made from the imported steel as a result of tariffs applied.

2 - They will be more confined to the domestic steel which will be likely to be costly than the imported steel.

3 - This rise in the price may lead to the consumers substituting the steel products by others.

4 - For producers who used imported steel as input , the cost of production will not increase because of tariffs.

Rahul Sunny answered 1 year ago

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