Who Are The Main Beneficiaries Of Protective Tariffs Such As Those Imposed On Steel Imports? Who Are The Losers?

The Untied States government has tries many times to protect the steel industry from the foreign competition. Despite the government help many small steel manufactures suffered because the efficient production by the foreign firms. Mini mills contribute the 40 percent of the United States steel market these mini mills uses the electric arc furnaces to produce the iron and to convert the raw iron to the finished one.

The major lost goes to the foreign producer and the domestic consumers of the United States of America. The European Union producers were very annoyed on these tariffs because they have to pay more in order to retain their business in the Untied States of America. So the foreign producer were some fears of the over production of the steel and were worried how they would dispose off that steel.

However the ultimately loss is increased for the Untied States consumer because the steel prices risen high due to which the American Consumer as well as the American producers suffered because the cost of the production also increased in the market which lead to more damage to the United States mills. So the ultimately loss goes to the Untied States of America due to the imposition of the tariff on the imports of the steel.