Final answer:
A tariff on Chinese imports into the U.S. generally benefits U.S. producers while penalizing Chinese producers, as it makes imported goods more expensive, encouraging consumption of domestic products. However, consumers face higher prices and industries reliant on exports can suffer due to retaliatory tariffs. B. benefit U.S. producers and penalize Chinese producers .
Step-by-step explanation:
A tariff imposed on Chinese imports into the United States tends to benefit U.S. producers and penalize Chinese producers. This would correspond to option B. Tariffs are taxes on imported goods which make these goods more expensive in the importing country, in this case, the United States. As a result, consumers may turn to domestically produced alternatives, which can give a competitive edge to U.S. producers. However, the higher prices for consumers and retaliatory tariffs by the other country, like those imposed by China on U.S. goods, can penalize domestic consumers and industries reliant on exports.
Moreover, while tariffs provide revenue to the government and might protect certain domestic industries from international competition, they can negatively impact consumers through increased prices. Economic studies, including the impact of the 2018 tariffs, show that tariffs generally lead to higher consumer prices. For instance, the tariffs led to higher prices for washing machines, and subsequently, consumers bore not only this increase but also faced higher prices for related goods like dryers even though they weren't subject to tariffs.