Question

Beginning in 2018, The U.S. imposed high tariffs on goods imported from several countries. Answer this questions about the tariffs:

What have been the effects of the tariffs, including responses of countries affected by the tariffs?

Answer 1

• Tariff is a tax imposed on imported goods to safeguard the domestic industry and generate revenue inside the country.
• Although there are some effects by using this tariff weapon they are:-

1. Restricts the volume of Trade inside thr country.
2. Lack of competition and sometimes leads to unfair.
3. Other countries also increase tariff on particular country with high tariffs.
4. Imports are costly.
5. Economic Efficiency is not observed.
6. There is lack of choice for the cosumers.

• USA imposed tariffs on goods from different countries like EU,Mexico,Canada,India,China etc..
• EU response to USA tariffs and questioned USA by saying it will lead to the decrease of supply chains among countries,there is a risk at global rule book,it threatened the rules and norms of WTO,and to retaliate it EU also safeguard ita own stakeholders by increasing tariffs in American goods.
• China response to US tariffs by saying imposing new tariffs is not the answer for trade fictions.To protect their own industry China also imposes tariffs on American goods.
• All the other countries who hit by the American tariffs also retalisted by imposing high tariffs back on American goods.
• Thus,as a whole it leads to the Trade War and world seems like to be visible as small parts by decreasing supply chains by this numbers and figures of tariff game.Trade war is not good for the member nations for inclusiveness and world peace and development..