Imposing tariffs

The vast majority of economists surveyed by a Reuters poll said that import tariffs would do more harm to the U.S. economy than good. Yet President Trump stood his ground then and President Biden is still maintaining the Trump-era tariffs till this day. Should we continue or discontinue imposing tariffs? Please share your thoughts.

https://www.youtube.com/watch?v=4_xQ5JisFuoPodcast:

https://www.tradetalkspodcast.com/podcast/49-are-trumps-steel-quotas-worse-than-his- steel-tariffs/

  1. How is a tariff different than a quota?
  2. What is the strictest/tightest quota?
  3. What are your options if a product already met the quota?
  4. Which country was mostly affected by the quota on the U.S. steel products?
  5. Was there a flexibility with regards to a recent steel quota?
  6. What does it mean to “swing” in the context of a quota?
  7. What is a part of the problem with a quota?
  8. The podcast mentions the auction as a way to reduce risks about the meeting the quota limit. From our in-class lecture notes on Tuesday, which area (a, b, c, or d) is associated with the revenue from the auction?
  9. What would be an example of Voluntary Export Restriction (VER)?
  10. Why do foreign companies bother exporting steel to the U.S. despite the hassle associated with a quota?

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