# data[].attributes.body
Graph 1: In theory, tariffs generate government revenue by taxing imports, which raises prices and reduces consumer surplus while creating producers producer surplus, tax revenue, and deadweight loss.

Graph 2: One of the challenges with Trump's tariff proposal is that the American population has a highly elastic demand. When demand is inelastic, quantity demanded changes less compared to elastic demand when price fluctuates. In this case, tariffs increase prices, which would theoretically reduce quantity demanded considerably.

Graph 3: The tariffs' impact on the job market is both positive and negative. While they may help to increase demand for jobs in industries that compete with imports, they can also hurt sectors that rely heavily on imported materials. This can lead to job cuts to reduce costs.

# data[].attributes.body
2018 Washing Machine Tariff Impact:

Increased washing machine costs by approximately 12%.

Resulted in an additional $1.5 billion yearly burden on U.S. consumers' income.

Projected Outcomes of New Tariffs:

Consumer cost increases

Economists' Perspective:

A 2024 University of Chicago poll indicates most economists agree tariffs drive higher consumer prices.

Economic Consequences of Tariffs:

Tariffs create jobs in protected industries but increase production costs in other industries.

Companies like Deere & Co faced higher raw material costs, leading to job losses.

Financial Imposition:

Tariffs on domestic production offset consumer savings.

Highlighted inefficiency and waste associated with such tariffs.

# data[].attributes.body
Unintended Consequences

Supply chain disruptions as US companies may seek alternative suppliers.

Foreign governments may retaliate with their own tariffs causing a trade war.

Inefficiencies

Shifting toward localized production may not be as efficient due to the comparative advantage that China and Mexico have in certain industries.

Externalities

A shift in production methods could result in higher environmental costs

The loss of comparative advantage would lead to higher operating costs that would be passed onto consumers.

Market Failures

Tariffs cause income reductions that may not be compensated by wage or employment gains, distorting the normal response of demand and supply.

The standard model assumes consumers can adjust to price changes, but the price increase doesn't reflect an increase in the value of the goods

# data[].attributes.body
1. Supply and Demand:

Concept: When tariffs restrict the supply of imports, the reduced availability of goods raises equilibrium prices.

Article Connection: Tariffs on imports cause production costs to rise, reducing supply and increasing consumer prices.

2. Cost-Push Inflation:

Concept: Inflation occurs when production costs rise, pushing up prices across the economy.

Article Connection: Tariffs raise costs for goods like cars and home components, leading to higher prices due to increased input costs.

3. Opportunity Cost:

Concept: Choosing one economic action results in the loss of potential gains from alternative actions.

Article Connection: By imposing tariffs and encouraging domestic production, the U.S. incurs higher costs, losing the benefits of cheaper foreign imports.

4. Elasticity of Demand:

Concept: Measures how sensitive consumers are to price changes.

Article Connection: Businesses pass on tariff costs to consumers, reducing sales, especially impacting poorer households with more elastic demand for necessities.

5. Comparative Advantage:

Concept: Countries should specialize in producing goods where they have a lower opportunity cost.

Article Connection: Tariffs disrupt global trade by reducing specialization and forcing domestic production of goods that could be produced more efficiently abroad.

6. Trade-Offs:

Concept: Economic decisions involve sacrificing one benefit to gain another.

Article Connection: Protecting domestic industries through tariffs causes job losses in other sectors and reduces GDP due to inefficiencies.

# data[].attributes.body
Economic Policy and Market Efficiency:

The article highlights how tariffs, as a form of government intervention, distort market efficiency by raising production costs and prices

Global Trade and Comparative Advantage:

The article discusses how tariffs disrupt international trade patterns, hindering the economic benefits of comparative advantage.

Inflation and Price Stability:

Tariffs create inflationary pressures through cost-push inflation, linking directly to class discussions on how input costs drive price increases in the economy.

Policy Trade-Offs and Unintended Consequences:

The article illustrates real-world trade-offs in economic policy decisions, showing how short-term industry protection can lead to long-term negative effects like GDP decline, job losses, and global supply chain disruptions.

# data[].attributes.wish_content.attachment_props.question
Would you be willing to pay more for goods if it meant supporting U.S. industries?

# data[].attributes.wish_content.attachment_props.question
Has your opinion on Trump's tariffs changed after this presentation?

# data[].attributes.body
Article: President-Elect Trump Announces Tariff Plans for Largest U.S. Trading Partners

https://www.hklaw.com/en/insights/publications/2024/12/president-elect-trump-announces-tariff-plans

President-elect Donald Trump has made headlines recently over his proposed tariffs on some of the US's largest trading partners. Trump announced 10% tariffs on China, and 25% tariffs on Canada and Mexico. These tariffs would be a part of Trump's first Executive Orders when he is inaugurated Jan. 20, 2025. These tariffs can be avoided if China, Canada, and Mexico can meet Trump's demand of addressing the movement of drugs and undocumented immigrants into the US.

Trump has also announced a potential 100% tariff on BRICS nations if they switch the US dollar with a different form of currency. The nine BRICS countries include Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and United Arab Emirates. With these tariffs looming in the near future it is important to understand how they will impact US consumers.

# data[].attributes.attachment_link.title
President-Elect Trump Announces Tariff Plans for Largest U.S. Trading Partners | Insights | Holland & Knight

# data[].attributes.attachment_link.description
President-Elect Donald Trump announced his intention to impose additional 10 percent tariffs on China, as well as additional 25 percent tariffs on Mexico and Canada.

# data[].attributes.body
We found many connections to economic contexts on how Trump Tariffs will affect American consumers. Tariffs are likely to increase costs for consumers because the cost to produce certain goods is more expensive and this is reflected through the price of products. Tariffs disrupt global trade by reducing specialization and having the most cost efficient country produce the products. It is also assumed that the American population has a high elasticity of demand due to capitalism and competition in the market. Thus the demand for products from these countries would decrease and consumers would switch to cheaper products. Consumer prices will still increase however because they are not getting the cheapest option available due to the tariffs. The tariffs could also decrease Americans' income, create inefficiencies of resources, and foreign governments may impose retaliation tariffs.