Case SummaryThe closing case explores the tariffs on American steel imports imposed by Donald Trump in 2018 with claims that protecting the U.S. steel industry was important to U.S. national security. Critics complained that these tariffs would result in higher prices for consumers and higher prices and job losses for companies using steel in their products. Steel producers celebrated their new-found profits earned as a result of the tariffs by expanding capacity.

Discussion Questions

1. The steel industry has a long history of asking for, and getting, tariff protection from foreign competitors. Why do you think this is the case?

2. Who pays the tariffs on imports on foreign steel into the United States? How does the payee deal with the additional costs that the tariffs represent?

3. What was the motivation in placing tariffs on imports of foreign steel in 2017? Who benefits from these tariffs? Who loses? In your estimations, are the tariffs and net positive or negative for the American economy?

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