Source:Pearson Edexcel International A Level Economics Student Book 2.Page 218

In March 2018, the President of the United States Donald Trump, imposed a 25 per cent tariff on steel imports and a 10 per cent tariff on aluminium. One justification for the tariffs was that they would help the metals industry in the US. The volume of steel imports from the countries hit by the tariffs and quotas was 36 per cent lower in June 2018 then a year previously. The fall in aluminium imports was 27 per cent. As prices rose, so did production. Although the US metal producers have gained, higher prices for steel and aluminium are a burden for those US firms who are metal users; and these account for a far higher share of American jobs. Industries such as construction and car-makers are disadvantaged because costs have increased and overseas competitors may be able to sell more cheaply than them. 1 Using a tariff diagram, show why the tariffs imposed on aluminium and steel imports would be expected to increase US production of these metals. 2 What are the problems of these tariffs for US metal user firms, such as car manufacturers