Aluminum Imports Indeed Bring American Furnaces And Smelters Roaring Back To Life Ced In Northeastern Assignment

435 words - 2 pages

I agree with the claims that Mr. President made partially. According to the article, the tariffs on steel and aluminum imports indeed bring American furnaces and smelters roaring back to life and create more jobs as steel workers. However, the following paragraph has already proved that the tariffs on imports can only bring comparatively little income to U.S Treasury. Just as the assumption made in this article, despite the tariffs’ depressive effects on demand, the new tariffs would only raise 0.08% of GDP. Therefore, there is no “big dollars flowing into our Treasury” at all. To be specific, considering the effects from tariffs in economic theory, the tariffs on imports will benefits producers and generates revenue for the government, but the losses to consumers exceed these gains (Mankiw, 2014). The tariffs will increase the domestic price on steel and aluminum, which is good for producers because the producer surplus increase and the supply will increase too. In fact, tariffs indeed revive some older, relatively inefficient steel companies. However, the higher price will decrease the demand, the consumers will face doubly disadvantages as higher production costs and the overseas competition. Due to these, the productivity of the entire company will drop and people in these companies may lose jobs too. In conclusion,...

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