International Economics Quota Example Assessment

In regards to the short term effects, if the tariff had not been implemented by the EU, there would be an influx of the quantity of steel. This would heavily impact the competition for local producers of
steel, as, in that scenario, consumers would be prone to purchasing products at a price lower than the local suppliers of steel would require for growth, thus creating recession amongst local firms.
Taking into context long term effects, this tariff will force the US to decrease the amount of steel that is exported towards EU member-states, thus the US will be left with excess quantities of steel.
In conclusion, the 25% over-limit quota tariff that has been imposed by the EU upon the a range of 26 categories of steel products for US imports will create revenue for the EU and force the US to decrease imports towards the EU. This will result in the EU maintaining growth potential for domestic producers of steel and an influx of steel for the US.…