Question

President Trump has raised tariffs on steel and aluminum imported into the United States. Answer both of the following:

1) What exporting countries are affected and how large are the tariffs?

2) What are the consequences for US industries and consumers? Note any differences among them in how they are affected.

Answer 1

Tariffs basically means tax that gets added on the cost of goods being imported.

1) The major countries that are affected due to the increase in tariff on steel and aluminium are European Union, Mexico, Brazil, South Korea and Canada, where Steel is taxed at 25% and aluminium at 10%, these are huge numbers as the average tariff rates between EU-US was under 3%. These countries retaliated as well saying that they would increase taxes on their imports as well as take certain re-balancing measure. China was almost the least impacted country or you can even say it was not impacted at all here in spite of steel and aluminium being cheap and most of the unfair trading in steel in US takes place due to this reason.

2) The consequences for US industries and consumers is that a decline in the trade between US and these three countries will do major damage to the US economy and create massive consequences for the rest of the world.This would also cause political damage to america's relation with its neighbours and other European allies.