Question:

Economics hw help over tariffs?

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Can someone explain this for me. Im writing a paper for my econ class and i need a little help from a pro. THANKS!

Supporters of the tariffs believed that U.S. steel producers were being harmed by illegal "dumping" of steel below the cost of production on world markets.

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  1. Dumping refers to selling a product in a foreign market either below what it cost to make it or below the cost in the home country.  I think that in this case, the steel was being subsidized by the producing country's government.  Dumping is condemned by the WTO, and member nations are allowed to put up tariffs if the dumping causes material injury to domestic producers.

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