Read the following article excerpt about tariffs on whiskey (WJ, 3 i XCX/2021) and answer the questions (A-C) that follow, (5 points in total) "Tanitfs levied ty the Trump administration dented U.5. sales of single-malt Scotch for more than a year, so when shey were wuspended this month Euan Shand and his colleagues drank to the occasion. "We raised a giass of whisky to celebeate." sald Mr. Shand, chairman of liguor merchant Duncan Taylor in Scotland. There was liftle to che er about some 4.000 miles away in Kentucky's Bourbon Belt. U.S. whiskey mokers still face 25% tariff on spirits they egport to the U.K. and the European Union. What's more the EU levles are set to double to 50% in kine. 'We are literally frosen; said Amir Peay, owner of James E. Pepper Distelecy in Lexington, Ky, who swys the tarif hit just as he had started investing heavily to take advantage of What had been rising sales in Europe. The woes troubling American whisker makers reffect both the complications of global trade and the penchant by waring sides to target iconic products in disputes. The US, placed taiffs on Scotch and French wine, and the Europeans toxed Harley Davidson motorcycies and American whiskey, aithough the underlying disputes had nothing to do wish those products. the Blden administration has taken steps to ease trode tensions with European alier. In joint announcements with the Eu and UK. It recently agreed to a four-menth suspension of tariffs imposed in a dispute over subsidies to commercial aircraft makers Boeing Co. and Airbus SE while the parties seek a resolution. That lifted tarifts that had taxed, afnorg other preducts, Scotch whisky and french wine experted to the U.5. and American iugeage, produce and vodka exported to Europe. Even so, the EU and Britain have retahed the tariffs on American whishey, which were imposed separately in retallation for U.S, tariffs on steel and aluminum imports thy remain in place. American whiskey makers sw they are being punished for a heht they didn't start. "Why drag us into this conflict?" asked Me. Peay, who had set up a distribution base in Amsterdam and ordered European-sired bottles from an itallan glassmaker before the tariff upended expansion planh. US. whilkey mukers could be in for even tougher times allead. The EU is threatening to raise tariffs on Anerican whicheys to 50K by June 1 unless the two sides can negotiate a solution. stand to raise their market share in the U.5. while Anerican whishey will remain subject to punishing tarifls in Curope, Mr. Whiting said "Where are the anly spit under these tanifs now: he said. The American whichey catesory shouldn' be holding the burden of the entire trade war:" Europe and the U.K account for roughly half of U 5 whiskty exports. Before the tariffs. American whiskey maken had been enjoying rising sales. Exports of American bourbon and other whiskeys to Europe (including the U.K.1 gew from 5527 millon in 2010 to $741 mition in 2018 . When the tariffs were imposed. Those exports shirank to 5469 million last year down 37% from the 2018 peak. Brown-Forman ectimates whishey represents a quarter of the tarifs collected by the Eu in the steel and aluminuen dispute, raising expoit costs by about $250 million annually. Some of these costs were gassed on to consumers through higher prices and others were absorbed by exportert, the companies way Whiskey makers, with the support of politiclans including Senate Republican leader Mach MeConnell of Kentucky, are calling on the Biden administration to reach an agreement with Europe to end the tariffs on their prodicts. 'If you aak me, the whole world could beneft from a little more Kentucky bourbon," Mr. MoConnell said Katherine Tai as U.5 trade representative said the US. would seek "an effective solution that looks at the whale slew of policy toois to address that larger problem." But she made no commitment to ending the steel and aluminum taitf. The US, had imposed those on nationalsecurity grounds, aying it needed to protect a strategic industry from being undermined by chete iriported steel produced with government subsidies Some US. companies including Harley-Davidson inc, have responded to the EU tanitfs by shifting some peoduction oversess. That isnt an option for whiskey makers whose products are rooted to their geography bourban from Kentucky and Jack Danieks from Tennessee. At James E. Pepper in Kentucky, the uncertanty over the trade fight, particularfy the threat of doubling the tariff, is caushas havoc in its operations. Mr. Peay sald, The company strucyles to decide howy many betties to order and labels to print let alone how many cases of whiskey to ship. For Mr. Shand, it's a beighter picture. After Duncan Tayloe lost more than half of its single malt whishy sales in the U.S in the past year, Mr. Shand peojectca 408 rebound this year, "We are scaling up:" Mr. Shand said. "We are going to hure sales resily." Questions A to C. Arswer the following questions using the space below, Each anwwer mast begin with the associated question letter, Otherwise, zero credit. A. According to the artide, which of the following statements is true? Choose ONE (1.5 points) a) The US. accounts for roughly half at Fliroge and the UK. whiskey exporte b. The Biden adininistration lus recently aggravated trde tensions with the European atles on tariffs imposed in a oirpute over subsidies to coenmencial aireraft makers Boring and Alsbus. c) Tariffs levind by the Trumg administration on imports of single-malt Scotch were suspended but tariffs on imports of whiskey into the UK and the EU counties art scheduled to double. d) Due to the tanits, most whishey makers are planning to shift some production overseas. c) The U.5 trade representstire has recently made a commitment to ending the steel and aluminum tariffs. B. Accocding to the article. the UK and EU tariffs on whishey were imposed in retalation for (ichoove ONE): (1.5 point)) a) Losing more than half of their single matt whisky sales in the U.S. in the past year: b) Us. tarids an imports of steel and aluminum which stay in effect. c) US. subsidies to Boeing an American rommercial aircraft maker. di US. subvidies to Harley Davison, an American motorcycle manofacturer: C. Accordeng to the article, Senator McConnell angued that tariefs on Kentucky bourbon la type of whiskey should be climinated: "If vou atk me, the whole worid couid beneft from a litte more Kentucky bourbon.. :Dicuss concisely why. from the perspective of trade theory, the Senator would advocate the elimination of tariffs imposed by the UK and EU on Kentudiv bourbon (Z points)