President Trump announced on March 1, 2018 that the U.S. government would impose 25% tariffs on imported steel and 10% tariffs on imported aluminum, which re-ignited the hot debate of free trade versus protectionism.
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- Assess why the U.S. government should protect the U.S. steel and aluminum industries. Are they infant industries?
- Evaluate the advantages and disadvantages of free trade and protectionism.
- What would be the economic impacts of free trade and protectionism on the following aspects of U.S. economy: Prices, employment/unemployment, GDP, producers and workers, and consumers? For protectionism, you may refer to a particular case of the U.S. steel industry, aluminum industry, manufacturing industry, automobile industry, or any other industry.
- Are you in favor of free trade or protectionism? Explain your reasoning.
A min of 2 pages length.
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