Final answer:
The question addresses the Business subject at the College level, focusing on the economic consequences of tariffs on imported Chinese tires, which impacted U.S. consumers and employment in various sectors, revealing a high cost for job savings in the domestic tire industry.
Step-by-step explanation:
The subject of the question relates to the economic impact a tariff on imported goods has on domestic markets, specifically referring to the addition of tariffs on car tires imported from China. It includes consideration of the costs to U.S. consumers, effects on domestic tire manufacturing jobs, and the broader implications for employment in other sectors due to increased tire prices causing reduced spending. The enforcement of a tariff by President Obama and Congress led to a significant increase in tire prices and ultimately affected the U.S. economy in various ways, such as shifting consumer spending, influencing job numbers in the United States, and impacting profits for overseas tire manufacturers.
The estimated annual cost to U.S. consumers resulting from the tariff on Chinese tires is $1.11 billion. To understand this comprehensively, $817 million of this amount goes to foreign tire manufacturers excluding those in China, and $294 million enriches U.S. tire manufacturers. One glaring calculation presented in the context of the tariff's economic impact is that saving one job within the U.S. tire manufacturing sector amounted to a cost of $926,500, considering the 1,200 jobs saved against the financial burden to consumers.