Tariff Analysis Lecture

Flashcards created to study key terms and concepts related to tariffs as outlined in the lecture.

Tariff

A tax imposed on imports.

Domestic Producers of Steel

They benefit from tariffs as they can sell more steel at higher prices.

Foreign Producers of Steel

They are worse off due to tariffs as they sell lower quantities.

Smoot-Hawley Tariff Act of 1930

Imposed tariffs on 20,000 goods and led to retaliatory tariffs from other countries.

Reciprocal Tariffs

Tariffs imposed by one country in response to tariffs imposed by another.

Effects of Tariffs on Consumers

Tariffs increase the prices of goods to consumers.

Qfree trade

Total steel purchased at world price in the US without tariffs.

PUS (domestic price of steel)

Price of steel in the US without international trade.

Pfree trade

World price of steel before tariffs are applied.

Retaliatory Tariffs

Tariffs that countries impose in response to tariffs imposed on them.

Analysis of Tariffs on Steel

Examines how tariffs affect the steel market, domestic producers, and consumers.

Imports

The amount of goods brought into a country, which decreases due to tariffs.

World Equilibrium Price (PW)

The price level where the quantity of steel supplied equals the quantity demanded globally.

Domestic Price with Tariff (PT)

The increased price of steel in the US after tariffs are imposed.

QUS (domestic steel production)

Quantity of steel produced domestically in the US.

Buyers of Steel

They face higher prices and lower quantities due to tariffs on steel.