The combination of weakening oil prices and the failure of Congress to deal with the budget deficit by cutting spending led some to see the possibility of achieving two objectives at once: (1) protecting US. oil producers from \"cheap\" foreign competition and (2) reducing the budget deficit. The solution was an oil-import fee or tariff. A tax on imported crude and refined products that matched a world oil-price decline, for example, would leave oil and refined product prices in the United States unchanged. Thus, it was argued, such a tax would have little effect on US. economic activity. It merely represents a transfer of funds from foreign oil producers to the US. Treasury. Moreover, it would provide some price relief to struggling U.S. refineries and encourage the production of US. oil. Finally, at the current level of imports, a SS/barrel tariff on foreign crude oil and a separate tariff of SlO/barrel-equivalent on refined products would raise more than $11.5 billion a year. 1.Why Companies competing against imports: experience an increase in wellbeing as a result of the tariff? Why the Exporters have a negative affected by the tariff