Question

Trade tariffs being levied by the United States against China & vice versa occupy a great deal of the news presently. With your knowledge of economics, you are able to analyze the direct and indirect impacts of tariffs on U.S. commercial enterprises.

Identify 2 industries that are directly identified and/or impacted by a proposed Chinese tariff against the U.S.

Pick at least one of these industries and answer the following:
(Answers must be in complete sentences with supporting evidence for your position.)

4. How would domestic sales be affected?
5. Do you believe China will be harmed by imposing this tariff? Why / why not?
6. Do you believe the U.S. will be harmed by the imposed tariff?   Why / why not??

Answer 1

4. These tariffs will actually create the ripple effect as in case of beef market although it would be marginal; on the other hand, the tariffs on other products like pork could significantly alter the U.S. domestic beef market.

5. China will be harmed by imposing this tariff as it could well be costly for Chinese businesses and consumers as well. Take an example of Soybeans, they are important share of the animal feed which produced in China thus any dearth in the supply from the US would possibly drive up prices of alike goods from Brazil as well as from Argentina.

6. U.S. will be harmed by the imposed tariffs as Apple, Boeing, Caterpillar, Intel and other multinational companies sell a lot of their products to Chinese consumers and businesses ant the tariffs would affect about 2.1 million jobs.