type
status
date
slug
summary
tags
category
icon
password
URL
Tariffs are essentially import taxes imposed by a government on goods brought into a country. Their primary goal is to protect domestic industries from foreign competition by making imported goods more expensive.
Example in Focus: US Tariff on Steel Imports
One well-known example is the 25 percent tariff the United States imposed on steel imports in 2018 under Section 232 of the Trade Expansion Act. The rationale was national security—ensuring a healthy domestic steel industry. However, the economic impact was mixed:
Positive Outcomes:
- Domestic steel production rose in the short term.
- Some steel manufacturers expanded operations and reopened plants.
- Employment in steel-related industries initially ticked up.
Negative Consequences:
- US manufacturers that rely on imported steel, such as automakers and construction firms, faced higher input costs.
- This led to increased prices on goods that use steel.
- Retaliatory tariffs from trading partners like China and the EU hurt US exporters, particularly farmers and manufacturers.
- Global supply chains were disrupted, and uncertainty led to postponed investments.
Net Impact:
While tariffs can provide short-term relief to targeted industries, they often prompt retaliatory measures and input cost inflation, leading to job losses elsewhere in the economy. Moreover, they can distort global trade patterns and increase geopolitical tensions. In this case, the tariff helped steel producers but at a cost to broader manufacturing and trade stability.
- Author:NEWSWIRE INDIA
- URL:https://www.newswireindiaonline.com//article/1d6a4a5b-472c-811b-bd67-cd9556bbc5cb
- Copyright:All articles in this blog, except for special statements, adopt BY-NC-SA agreement. Please indicate the source!
