The United States has imposed a tariff of 40% on soft wood imports from Canada. The tariff caused imports of lumber to drop precipitously after only a few months. Additionally, the price of lumber rose significantly after only a few months. Who benefited from this tariff? Choose one or more A. U. S soft wood producers B. Canadian soft wood producers C. non-Clanadian foreign soft wood preducers D. U. S. soft wood consumers

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Rudy Bryan

Business

7 October, 18:25

The United States has imposed a tariff of 40% on soft wood imports from Canada. The tariff caused imports of lumber to drop precipitously after only a few months. Additionally, the price of lumber rose significantly after only a few months. Who benefited from this tariff? Choose one or more A. U. S soft wood producers B. Canadian soft wood producers C. non-Clanadian foreign soft wood preducers D. U. S. soft wood consumers

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Keyla Hopkins · Answer 1

Tariff of 40% on softwood imports from Canada

Who benefited?

A. U. S softwood producers

Explanation:

Basically, import tariffs are meant to discourage imports from a particular country with higher cost of importation. It is usually undertaken when you want to encourage local production of the commodity.

This of course depends on whether there are U. S. softwood producers. If there are, they would benefit tremendously with the significant rise in price caused by the tariff.

If there are not, then non-Canadian foreign softwood producers would benefit, assuming similar tariffs were not imposed on them. However, Canadian softwood producers would also benefit should they continue to export their softwood to the U. S. The losers would be the U. S. consumers, no matter the beneficiaries.