Question

The U.S has been running trade deficits since 1970. To reduce these deficits, it is often suggested that the U.S. should raise tariffs and impose trade restrictions. Do you think these policies would help the U.S? Explain. You can also add articles to support your answer

at least 100 words

Answer 1

Answer - Yes , this would benefit US. The imposition of tariffs and other quantitative trade restrictions on imports will raise the price of imports , limit the quantity of import due to which the imports of US will decline. US has got all the technology to produce goods at home of all kind. Hence , the domestic goods would take the place of imports now. Because of the reduction in the imports , the net export value will increase and hence there will be decrease in the trade deficit due to lower imports.