In early 2017 President Trump announced a 25% tariff on imported steel (and a 10% tariff on imported aluminum), citing two faulty arguments in his rationale.

Trump's announcement: https://youtu.be/s2NgZhc7K4Y?t=2

Impact on industries: https://www.detroitnews.com/story/news/politics/2019/01/13/trump-paying-tariffs/38893859/?fbclid=IwAR1CnAgKPBhYy-Sz9WB4KnlZZhZs3pT82FXAu4S5DcfHZHOJaCcZ5oiYUC0

1. What were two faulty arguments used by the President in this conference?

2. Who wins and who loses when the US imposes import tariffs on steel? Discuss the overall impact on PS, CS, and TS in the market for steel.

3. What would you expect to happen to the market for goods produced with steel, such as automobiles (hint: think of shifting supply or demand curves)? What happens to PS, CS, and TS in these markets? You may want to draw this out on scratch paper before writing the answer.