In addition to deadweight losses, the 2009 tariff on Chinese tire imports shifted U.S. tire demand to other higher-cost import sources not subject to the tariff. What was the approximate value of the higher payments to these other higher-cost import sources?
A) $512 million per year
B) $817 million per year
C) $1,112 million per year
D) $5 billion per year

Question

Quizplus · Accepted Answer

According to a study by the Peterson Institute for International Economics, the tariff led to a shift in U.S. tire demand to other higher-cost import sources, resulting in approximately $817 million per year in higher payments to those sources.

In Addition to Deadweight Losses, the 2009 Tariff on Chinese