Description
need to reply two student each one 300 words should have reference and citation in paragraphs applied for the reply for student I need separate file for the reply for student with reference ( put in each file answer the name like reply student one file and reply student two file )
student one
The steel industry in the United States has a lengthy historical record of actively seeking and getting tariff protection from foreign competitors for several reasons, including economic, political, and national security factors. Moreover, the steel industry’s continuous effort to obtain tariff protection can be referred to its significant effect on employment, economic stability, and critical infrastructure. Furthermore, the considerable power of the industry, which tends to be located in places with political significance, has facilitated its effective advocacy for protection (Amiti et al., 2019).
Regarding the economic factors, the United States steel industry plays a significant role in employment, including a considerable workforce engaged in direct steel manufacturing and an additional workforce indirectly employed in businesses reliant on steel. The individuals employed in the steel industry and the associated firms are interested in protecting this industry. This is due to the potential consequences of job reductions on the local economy in places engaged in steel production. In addition, a strong domestic steel industry is contributing to fostering economic stability. With a lack of tariff protection, steel manufacturers might face intense competition from foreign steel manufacturers with lower costs, which could result in the closure of factories and workforce reductions. Tariffs are perceived as a method of preventing such problems (Irwin, 2007).
Political consideration also is an important factor that needs to be considered. States with a robust presence in steel manufacturing, such as Indiana, Pennsylvania, and Ohio, can be regarded as critical states in the United States elections. Politicians in these states may support steel tariffs as a strategic tactic to gain popularity among the people they represent and earn votes in elections. Moreover, Manufacturers of steel and their respective business groups have considerable lobbying powers and financial assets, enabling them to influence legislators. They can support political campaigns financially and establish a direct communication channel with elected representatives (Lowande et al., 2017; Hua & Zeng, 2022).
Another justification for tariff protection is that the steel industry often claims it is necessary to maintain national security. Steel is crucial in constructing and preserving defense infrastructure, covering multiple uses such as vehicles and weaponry (Ranjan, 2022). It is essential to have a steady domestic steel supply in case of war. Steel also plays a critical part in developing necessary infrastructure projects, including but not limited to buildings, bridges, and energy production. The preservation of the local steel industry is perceived as a strategy to sustain the durability and strength of these critical infrastructure facilities.
Furthermore, tariff protection has potential advantages for domestic steel businesses by minimizing the effects of foreign competition (Magee, 2002). This strategy can enhance the financial stability of these businesses, facilitate investments, potentially foster industry expansion, and positively impact the long-term sustainability of the industry. The government also benefits because the tariff raises government revenue (Hill, 2022, p.212). The United States steel industry has previously been effective in obtaining tariff protection; this sets a tone for such requests in the future. Continued advocacy for protection is prompted by tariffs that are implemented and are expected to help the industry (O’Rourke, 2000).
However, it is crucial to acknowledge that the consequences of steel tariffs surpass the industry, influencing worldwide supply chains, trade relationships, and steel customers. The current debate about steel tariffs highlights the challenge of balancing the interests of different parties in an international economy. In order to make decisions that benefit both the domestic industry and general economic well-being, governing bodies must manage these challenges by weighing the advantages to the steel industry and their impact on the economy.
References
Amiti, M., Redding, S. J., & Weinstein, D. E. (2019). The impact of the 2018 tariffs on prices and welfare. Journal of Economic Perspectives.
Irwin, D. A. (2007). Tariff incidence in America’s gilded age. The Journal of Economic History.
Lowande, K., Jenkins, J. A., & Clarke, A. D. B. (2017). Presidential particularism and US trade politics. Political Science Research and Methods.
O’Rourke, K. (2000). Tariffs and growth in the late 19th century. The Economic Journal.
Magee, C. (2002). Declining industries and persistent tariff protection. Review of International Economics.
Ranjan, P. (2022). Russia-Ukraine war and WTO’s national security exception. Foreign Trade Review.
Hill, C. (2022). Global Business Today. Published by McGraw Hill LLC.
Hua, S. & Zeng, K. (2022). The US–China trade war: economic statecraft, multinational corporations, and public opinion. Business and Politics.
student two
Countries exchange products and services in the global economy and governments use a variety of policy instruments to recognize international trade while also protecting their own economies and industries. Tariffs have been used as a policy instrument for a long time. Tariffs can be thought of as taxes on products from other countries. When a product enters a country, the government levies a fee, either as a fixed price to be paid for each item imported into the country, known as specific tariff, or as a percentage of the item’s value, known as ad valorem tariff (Hill,2022).
During President Trump’s administration, the United States imposed tariffs on foreign steel in order to support its own industry, but this resulted in concerns over employment, increased costs, and the threat of a trade war (Hill,2022). By exploring the steel tariffs case, which is regarded as an example on the international trade, I think there were several reasons have contributed to the steel industry in the U.S. for requesting tariff protection.
First, protect the steel related industries and jobs in the United States. Beyond direct employment, the steel sector is economically significant. It is a major actor in the overall manufacturing sector, having an impact on industries such as construction, machinery, and vehicles Tariffs are viewed as a means of ensuring the general well-being of the supply chain (Alden, 2003).
Second, in terms of economics, tariffs can assist shield domestic steel producers from overseas competition. The government raises the cost of imported steel by imposing tariffs, providing domestic producers a competitive edge. Tariffs, on the other hand, can be employed to make government funds. Governments can raise revenue to support governmental expenditures, infrastructure development, and other economic activities by taxing items that are imported (Scott, 2023).
Third, political issues: The steel sector is ideally situated in crucial states such as Indiana, and Ohio, which frequently play key roles in United States election campaigns. Tariff protection may be supported by political leaders in order to earn favor with electors across these areas (Hill, 2022).
Fourth, in order to defend national security, countries may state that specific businesses, particularly those related to defense, must be protected. The justification stated that depending too heavily on imported steel might jeopardize the country’s readiness for defense (Barbara, 2021).
In conclusion, there are actually a pair of justifications for the government intervening in international trade through imposing tariffs on some imported items: political and economic. Political justifications are concerned with protecting specific interests or pursuing broader goals, whereas economic justifications are concerned with making the country as a whole more -wealthy through strategic decisions in international trade.
References
Hill, C. (2022). Global business today (12th ed.) McGraw-Hill Higher Education
Alden, E. (2003). Steel report may revive tariff wars US INTERNATIONAL TRADE COMMISSION: [LONDON 1ST EDITION]. Financial Times.
Scott, N. (2023). What is a Tariff and Why are they Important?
Barbara, C. (2021). Transatlantic tariffs, national security, and geopolitical priorities.
