ECN 211

Tariff A tax on imported goods Who benefits/loses from free trade? 1. Foreign producers of steel (exports steel to US) 2. Buyers of steel and steel-related products (price falls and quantity increases) Who is worse off because of free trade? 1. Domestic producer of steel (sells lower quantity and at a lower price) Who benefits from tariffs? (US steel producers example) 1. Domestic producers of steel (sells more at a higher price) Who is worse off because of the tariff? 1. Foreign produc...

Tariff A tax on imported goods Who benefits/loses from free trade? 1. Foreign producers of steel (exports steel to US) 2. Buyers of steel and steel-related products (price falls and quantity increases) Who is worse off because of free trade? 1. Domestic producer of steel (sells lower quantity and at a lower price) Who benefits from tariffs? (US steel producers example) 1. Domestic producers of steel (sells more at a higher price) Who is worse off because of the tariff? 1. Foreign produc...