Question

in early 2018, president trump imposed new tariffs on washing machines produced outside the united states because:

Answer 1

President Trump imposed tariffs on imported washing machines in 2018 to protect U.S. manufacturers from foreign competition and to encourage domestic production, but this resulted in higher consumer prices and an estimated high cost of $820,000 per job created.

Step-by-step explanation:

In early 2018, President Trump imposed new tariffs on washing machines produced outside the United States. The main reason for these tariffs was to provide safeguard relief to U.S. manufacturers that were harmed by surging imports. Tariffs are taxes on imported goods and services, which makes imports more expensive for consumers, thereby discouraging imports. By increasing tariffs, the intention was to protect U.S. manufacturers from foreign competition, promoting jobs within the domestic industry. However, while this decision did create additional jobs, it did so at a high cost to consumers, estimated at $820,000 per job created due to increased prices.

Moreover, these tariff measures can escalate into trade wars, as seen when China responded by imposing tariffs on American goods. The economic impact of such tariffs is multifaceted, with consumers often bearing the costs in the form of higher prices. For instance, after the 2018 tariffs against washing machines, prices rose nearly 12%, and consumers ultimately paid more than the cost of the tariffs because associated products like dryers also saw price increases.

Answer 2

In early 2018, President Trump imposed new tariffs on washing machines produced outside the United States because he aimed to protect the domestic appliance manufacturers in the United States. The tariffs were implemented as part of the Trump administration's larger trade policy agenda, which was focused on reducing the trade deficit with other countries and supporting the expansion of domestic manufacturing jobs.