In 2009, the United States imposed a tariff of 35% on radial car tire imports from China. The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires to increase by $8 per tire. Who was the primary loser of this tariff?

Question

Mays

Social Studies

16 March, 00:28

In 2009, the United States imposed a tariff of 35% on radial car tire imports from China. The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires to increase by $8 per tire. Who was the primary loser of this tariff?

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Answers (1)

Know the Answer?

Elliott Bolton · Answer 1

Answer: CHINA

Explanation:

1) The fact that important of this tires reduced significantly in one quarter means that local production would be boosted on the long run

2) The $8 increase will still be in the American economy

3) Less money going to China.