Question

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?

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.

Answer 2

Answer:

The primary loser from this tariff is the consumer.

Explanation:

• Due to the imposition of the tariff, the price of the tire increased and the consumer had to now pay a higher price for the same tire and also due to the increased price, many consumers who bought tires at the earlier low price would not have bought the tires anymore at the increased price.

Learn more about bonds refer:

• https://brainly.com/question/6869228