Question

Steel Tariffs Appear to Have Backfired on Bush

President Bush set aside his​ free-trade principles last year and imposed heavy tariffs on imported steel to help out struggling mills in Pennsylvania and West Virginia. Some economists say the tariffs may have cost more jobs than they​ saved, by driving up costs for automakers and other steel users.
Source: The Washington Post, September 19, 2003
Explain how a high tariff on steel imports can help domestic steel producers.
Explain how a high tariff on steel imports can harm steel users.
When a high tariff is placed on steel imports, U.S. steel producers produce______steel and they pay a ________price.
A. less; higher
B. more; lower
C. less; lower
D. more; higher

Answer 1

A high tariff on steel imports can help domestic steel producers by reducing competition and allowing them to sell at a higher price, but it can harm steel users by raising production costs. U.S. steel producers produce less steel and pay a higher price when a high tariff is placed on steel imports.

Step-by-step explanation:

A high tariff on steel imports can help domestic steel producers by making imported steel more expensive, which reduces competition and allows domestic producers to sell their products at a higher price. This increases the profits of domestic steel producers and provides them with the resources to invest in their companies, pay higher wages, and potentially save jobs. Additionally, the tariff provides an incentive for consumers to buy domestically-produced steel, supporting the domestic industry.

However, a high tariff on steel imports can harm steel users. The increased cost of imported steel due to the tariff raises the production costs for industries that rely on steel as a raw material, such as automakers. This, in turn, can lead to higher prices for consumer goods and potentially result in job losses in industries that use steel.

When a high tariff is placed on steel imports, U.S. steel producers produce less steel and they pay a higher price. Therefore, the correct answer is option A: less; higher.

Answer 2

Steel industry in the United States of America has had its up and down over the years. this is especially going by the fact that it is cheaper to import steel from outside America than to buy those produced in U.S. However, high tariff on steel import would enable the domestic steel producers to meet their obligation as well as recoup their investments in the steel industry in U.S.

For example, most construction based organisation would prefer to buy from domestic steel producer if the price and tariff of imported ones makes it extremely difficult to purchase.

On the other-hand, the high tariff placed on steel import could also harm steel users due to the fact that, the quality of steel which they buy from outside U.S would no longer be available to them.

Also, they would be forced to buy at whatever price from domestic producers whether they had need for the steel or not due to high tariff on imported ones.

When a high tariff is placed on steel imports, U.S. steel producers produce more steel and they pay a higher price.

Answer: D. more; higher

Step-by-step explanation: