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President Trump- Tariffs

President Trump- Tariffs.

On March 8, 2018, President Trump used his authority granted under the

Trade Expansion Act of 1962 to impose a 25 percent tariff on steel

imports and a 10 percent tariff on aluminum imports, effective March

28, 2018. Initially, Canada, Mexico, and members of the European Union

were exempt from these tariffs, but this exemption was taken away on

June 1. Tariffs, or taxes on imported goods, are the most widely used

type of trade barrier and are often considered economically

inefficient. Do some research on these tariffs and then address the


  1. What official reason was given for the implementation of these


  1. Who will receive the most benefit from these tariffs and who will

be harmed by them?

  1. Relate these tariffs to the economic principle of comparative

advantage and discuss what will happen to production and prices of

those products that use steel and aluminum.

  1. Explain why some American companies might be opposed to these


  1. What do you think will be the economic consequences of these

tariffs, both domestically and globally?

  1. Do you believe the implementation of these tariffs was a good idea?

Why or why not?

Sample Solution

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President Trump- Tariffs


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