Question

a.) What are the short-term and long-term impacts associated with the tariffs Trump has recently imposed on various goods?

b.) The tariffs on imported steel and aluminum are projected to create approximately 30,000 manufacturing jobs. Does this indicate that it is beneficial to the U.S. economy to impose these tariffs? Explain.

c.) According to the article, what are the total projected jobs gained and projected jobs lost as a result of these tariffs?

from this article

https://goo.gl/Tniqcw

Answer 1

1. Imposing tariffs will increase employment and domestic production of the goods as now country will meet its demand on its own production. Also in the short run this will have adverse consequences on the economy by increasing the local prices of good and therefore more burden on pockets of consumer.

In long run this will encourage firms not to make product competitive enough to get it sold in international markets thereby deteriorating consumers further. Also companies may be willing to move their factories outside US as their local cost of production has risen due to import tariffs or they will go for extreme automation hence reducing employment.

2. As discussed above tariff may increase employment in short run when companies finds to meet demand through local production alo this will raise prices in long run for steel industry thereby making a drag on consumers pocket, also it may have tendency to increase inflation in medium term. Also it may increase cost of labour as labour will be in short supply in near term.

3. Projected job gains = 30.3K.

Projected Job loss = 432.7K  

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