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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (5516)	10/17/2002 12:16:51 PM
From: GraceZ	Read Replies (1) of 24758

You impose a tariff or tax, the price of the import has to be priced down in order to sell in the US. This brings the final price they get down below cost and the importing companies are forced to shutter capacity (unless they can get their government to subsidize the industry). I don't know how this helps the demand side, but it gets the supply side in line. Although you have to wonder if it simply forces companies who use steel to import steel incorporated in a finished product. ie. push auto manufacturing overseas where they can buy steel with low price and no tariff and import the finished cars.

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