In 2002,the U.S.imposed higher tariffs on steel imports to save American jobs.How did these tariffs reduce U.S exports?
A)The dollars that foreigners could have earned on U.S.imports decreased,thus reducing U.S.exports.
B)The tariffs led to lower imports of steel,a depreciation of the dollar,and consequently lower U.S.exports.
C)The country's trading partners have always imposed high tariffs on their own imports.
D)The tariffs increased domestic inflation leading to a depreciation of the dollar and consequently,lower U.S.exports.

Question

Quizplus · Accepted Answer

The tariffs reduced the amount of dollars that foreign entities could earn from selling steel in the U.S., which in turn decreased their purchasing power for goods from the U.S., leading to a reduction in U.S. exports.