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Electric car components from Japan increase by 77% due to U.S. import tariffs on Japanese car components at a time when the demand for American-made
Electric car components from Japan increase by 77% due to U.S. import tariffs on Japanese car components at a time when the demand for American-made electric cars is skyrocketing in the US. Given that, which of the following is most likely to occur? The US electric car manufacturers will lower by 77% the costs at which the Japanese manufacturers produce electric car components. The US electric car manufacturers will absorb the 77% higher components costs by keeping prices of its cars the same as before. The US electric car manufacturers will pass the 77% import tariff to the consumer by increasing the prices of electric cars. The US electric car manufacturers will offer gifts to US government officials to secure lower tariffs
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