One Tariff Imposed By President Trump

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ONE tariff imposed by President Trump. Who wins and who loses from this tariff? Discuss the likely consequences
Trump imposed tariffs on aluminum and steel imports in the country to protect the steel and aluminum industry in the country. Steel imports will be taxed at 25 percent and aluminum at 10 percent. However, from the surface, the tariffs seem to be favoring the united states but they will eventually lose to billions of losses. The U.S. is the world's biggest steel importer. Imported steel is used in the manufacture of other products such as automotive, food cans etc. The prices of these commodities will increase since the companies will maintain marginal revenue and transfer the cost to the consumers. This will affect more companies and increased cost of production will eventually lead to less consumption and fewer profits. Additionally, the tariffs might scare potential companies wishing to invest in US and deals with the goods that are affected by the tariffs. If it is cheaper to produce their products elsewhere, these potential investors will move to those countries and the tariff will be counterproductive since it was meant to protect the US steel companies and create more jobs. In a retaliatory effort, Harley Davidson company announced it might move to other countries where their production process would be cheaper CITATION All18 \l 1033 (Rappeport, 2018). Therefore, these tariffs eventually lead to capital outflow and direct loss of jobs.
Secondly, the tariffs were met with retaliatory measures from the affected countries. They also increased the tariffs on goods bound for the US and the cost will eventually be borne by US consumers. It might also reduce the exports by the affected countries especially Mexico and Canada but they can find other markets. They will have lost albeit not entirely the US market but their retaliatory tariffs will be meant to hurt the US economy.
Consumers will have to bear the cost of these tariffs because it affects products produced on their own soil. First, there will be the direct cost of the goods produced on American soil which either their production uses aluminum and steel either directly or indirectly. Secondly, the retaliatory efforts by the other countries affected by these tariffs such as Canada, China, Mexico, and the European Union will also affect the price of other commodities. For instance, Mexico is not likely to respond b imposing tariffs on steel and aluminum products, she will impose tariffs on agricultural goods. ...