On March 1, 2018, President Trump announced his intention to impose a 25% tariff on steel

and a 10% tariff on aluminum imports. In a tweet the next day, Trump asserted, "Trade wars are

good, and easy to win." On March 8, he signed an order to impose the tariffs effective after 15 days.

A study published in fall 2019 in the Journal of Economic Perspectives found that by

December 2018, Trump's tariffs resulted in a reduction in aggregate U.S. real income of $1.4 billion

per month in deadweight losses, and cost U.S. consumers an additional $3.2 billion per month in

added tax.

What is the impact of imposing a 25 percent tariff on imported steel? How does the tariff impact the quantity demanded and quantity supplied? Who gains and who loses as a result of the tariff? What is the deadweight loss

that results from the tariff and why does this result in economics inefficiency and a loss in producer plus consumer surplus. What is the amount of revenue collected? Does China pay these tariffs or U.S. consumers?