Items upon which the U.S. Government has imposed a Tariff and the Impact of such a Tariff on Trade.
U.S. imposing tariffs on steel from the nine countries accused of dumping
The U.S. government has hit tariffs amounting to 118% on steel from the South Korea and Eight other countries.
The short-run of this tariffs imposition is the curb of steel imports and boost the prices of particular steel goods which could be felt by American consumers and businesses. Furthermore this could also help in the restoration a good number of steel factor jobs which have been idle due to pressures from the imports. But this relief to the domestic steel manufacturers could likely be short-lived.
Read also Pros and Cons of Tariffs
Even though there has been an international oversupply, the U.S. Steel Corp. and even other domestic operators still have the opportunity to chargesignificantly higher than the global competitors for the steel goods (Don, 2014). This is due to the industry having gone through serious reconstruction for the past decades and therefore it is now leaner, productive and more concentrated with higher capacity to dictate the prices.
The imposition of such tariffs by the U.S. government, on a deep scrutiny on the industry depicts that U.S. steel market is out of sync with the global trends, resulting to decline in steel prices as there is softening of the Chinese real estate construction.
The imposed protective shoe tariffs by the U.S. government
Despite the fact that nearly 99% of the Americans footwear is imported. That would mean that there is no domestic shoe industry that would need special-interest protectionist trade legislation in order to compete successfully with the other lower-cost foreign competitors (Mark, 2012). But yet unusually, Americans still pay protective tax in the name of tariffs rates ranging from 37.5% to 67.5% on the foot-wears which are imported as a legacy of Smoot-Hawley Tariff Act of 1930.
The footwear tariff has impacted heavily on trade from the perspective that it compels consumers to dig deep into their pockets to purchase the items. Therefore, removal of such import duties on the shoes Americans buy on a daily basis will finally put money back into the pockets of these consumers.
The U.S. imposition of steep tariffs on the importation of Chinese solar panels.
The U.S. Commerce Department has imposed duties ranging from 18.56% to 35.21% on the importation of Chinese solar panels which are made from certain components, proclaiming that the manufacturer had gained from unfair subsidies.
Read also Trade and Exchange Represent “The Most Important External Stimuli to Change” – France
The imposition of the tariffs on solar panels have been due to the effects the Chinese business had on the domestic solar industry in which a number of manufacturers was squeezed to bankruptcy by the strong competition from China while consumers, installers and developers have ben assisted by the accessibility of inexpensive panels (Diane, 2014).
Such damaging tariffs will finally result into increment of the costs for U.S. solar consumers and thus slow down the adoption of solar among Americans. This is because the readily available inexpensive solar panels will no longer be available due to lack of an agreement on a volume quota and price floor for the Chinese modules.
U.S. to impose tariff on Chinese Tires
The Obama administration has set to put some stiff import duties of 35% on the Chinese light truck and passenger tires, in response to what the International Trade Commission of U.S. determined to be a surge of the Chinese tire exports which has hit the domestic tire industry of U.S. thereby displacing thousands of opportunities on jobs (Jonathan, 2009).
The tariff on the Chinese tires would impact on the American economy by creating a platform of exercising protectionism which would not give a positive feedback to the global trading partners of America. Moreover, this tariff is seriously impacting on the costing more American jobs that it can create as such Chinese tire business which were employment opportunities to the U.S. nationals will no longer be sustaining in such a market of steep tariff imposition. In addition, this unprecedented action would increase to American consumers apart from taking away choices from them.
Order Unique Answer Now