Suppose that in response to huge job losses in the U.S. textile industry, Congress imposes a 100 percent tariff on imports of textiles from China. What is the effect of the increased tariff on U.S. and Chinese gains from trade? In the United States, who gains and who loses from the increased tariff? Question content area bottom Part 1 With the increased tariff, _______. A. both U.S. and Chinese gains from trade will decrease B. both U.S. and Chinese gains from trade will increase C. U.S. gains from trade will decrease and Chinese gains from trade will increase D. U.S. gains from trade will increase and Chinese gains from trade will decrease Part 2 In the United States, _______ will gain and _______ will lose. A. textile workers and owners of textile firms; all consumers B. all consumers; producers of goods other than textiles C. textile workers and owners of textile firms; textile consumers D. producers of goods other than textiles; textile consumers

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