Question

Part One: By the government proposing a 45% trariff on imported steel, what should the u.s. steel producers do to make this barrier beneficial to more people?

Part Two: If the government does not propose a 45% trariff on imported steel, what should the u.s. government do to reduce the negative impacts of free trade?

Answer 1

Part-1

Due to imposing tariff on imports the consumer companies have to pay these taxes which inturn these companies will make the people to pay these amount by increasing the prices thus this will be again burden on people. The only thing is that the government will use these tax amount income for the people. But the people will not get benefitted on this type of tax beacuse this impact the trade and imports on other products which will lead to breakdwon in economy.

Part2

If the government does not import taxes the countries which are importing steel will use this as an advantage and try to make income by using high costs. The Government should check on other sources for import of steel from other countries and make trade agreement which make the present importer to reduce its cost.