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In Spring 2016, U.S. imposed a steel tariff. Read the WSJ article in the "Reading" folder on SmartSite (Reading2_Steel Tariffs.pdf), and answer the following questions:
1) How much was the import in the first quarter of 2016 under the new tariff? Import in the first quarter of 2015 prior to the tariff?
2) The U.S. benchmark hot-rolled coil index represents the domestic steel prices in the U.S.. What was the level of this index after the tariff? Prior to tariff? What was the level of hot-rolled coil index in China?
3) How much is U.S. government's revenue from tariff?
4) What industry represents the customers of steels, i.e, who are the buyer?
5) Illustrates the welfare impact of U.S. steel tariff using demand and supply curves. Who are the winners and loser? What is the consumers' gain or loss? Producers's gain or loss? Govn't revenue? Total change in U.S. domestic social welfare? Mark these areas in your graph.
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