A tariff on steel imports causes the price of imported steel to increase.  One direct effect is:

The Mid-Continent Nail plant in Poplar Bluff, Missouri, laid off 60 of its 500 workers last week because of increased steel costs. The company blames the 25% tariff on imported steel. Orders for nails plunged 50% after the company raised its prices to deal with higher steel costs.

Maybe not intended, but perhaps predictable.  But following the bouncing ball of unintended consequences leads you to:

 

via GIPHY

UPDATE: I'm adding this to our new "It's easy to win a trade war' category, as soon a John gets around to updating our category list. 

Posted in ,

Leave a Reply

Discover more from Environmental Economics

Subscribe now to keep reading and get access to the full archive.

Continue reading