Tariff taken to the cleaners

Tyler Cowen’s Marginal Revolution alerted me to this neat story about the unintended consequences and costs of import tariffs

A decision by the US government to introduce an import tariff on cheap coat hangers from China is causing problems for dry-cleaning businesses. Some are resorting to asking customers to return their hangers to keep costs under control. The tariff was designed to counter allegations of dumping by Chinese producers which threatened the survival of the USA’s sole-surviving coat hanger manufacturer. But, as is the case with so many import tariffs, the gains from protectionism in terms of jobs saved and domestic output preserved, are outweighed by the higher costs facing industries that use coat hangers - dry-cleaners, hotels and clothese retailers.

More background available here

and here

Tutor2u revision presentation on trade and protectionism

Unit 2 Macro: Evaluation on Supply-Side Policies [21 May 2012]
Unit 2 Macro: The Current Account of the Balance of Payments [20 May 2012]
Unit 2 Macro: UK Trade in Services [20 May 2012]
Unit 2 Macro: Revision Notes on Supply-side Policies [10 May 2012]
Unit 2 Macro: Model answer for revision data question [9 May 2012]
F585: Recent Articles of Relevance [6 May 2012]
Unit 2 Macro: Trade and Balance of Payments Glossary [5 May 2012]
Macro Revision - Key Statistics on the UK Economy [4 May 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
Unit 4 Macro: The Euro Zone Crisis (Revision) [22 Apr 2012]
Unit 2 Macro: Globalisation and the Growth of Ports [10 Apr 2012]
Unit 2 Macro: The UK Balance of Payments in 2011 [4 Apr 2012]
Global Economy- the 2012 BRICS Summit [28 Mar 2012]
Life in the Slow Lane - UK Growth in 2011 Lags the Euro Area [28 Mar 2012]
Beyond the Bike - Monetary Policy in Africa [28 Mar 2012]
Free Trade Agreements [25 Mar 2012]
Solar Panels and Tariffs [21 Mar 2012]
Evidence of the dangers of protectionism [9 Mar 2012]
Unit 4 Macro: Sovereign Wealth Funds [4 Mar 2012]
Unit 2 Macro: Might Oil Prices Bring another Recession? [4 Mar 2012]
Unit 2 Macro: The Dash for Gas in Mozambique [17 Feb 2012]
Economics Explained, by Evan [12 Feb 2012]
Unit 2 Macro: China’s Trade Engine is Spluttering [10 Feb 2012]
Unit 4 Macro: Focus on India - Comparative Advantage [27 Jan 2012]
Unit 2 Macro: Focus on China - Trade and Growth [27 Jan 2012]
Unit 4 Macro: Focus on India - Economic Growth [24 Jan 2012]
Unit 2 Macro: Exporting to the Booming Chinese Economy [23 Jan 2012]
Unit 4 Macro: Russia Joins the WTO [22 Jan 2012]
Unit 2 Macro: Frontier Markets - the New BRICS? [15 Jan 2012]
Beyond the Bike - The Importance of Remittances [15 Jan 2012]
Unit 4 Macro: Competitive Advantage in Trade (Some Videos) [12 Jan 2012]
Unit 4 Macro: UK Trade Patterns [11 Jan 2012]
Unit 1 Micro: Low Cost Airlines Beat the Recession [1 Jan 2012]
Unit 2 Macro: Brazil Overtakes UK in Economic Size [26 Dec 2011]
Beyond the Bike - The Value of Money [19 Nov 2011]
Unit 2 Macro: Should the EU introduce a Tobin Tax? [14 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Unit 4 Macro: Should TNCs make full disclosure on factory wages? [30 Oct 2011]
Trading Troubles [29 Oct 2011]
Can the “invisible hand” solve Africa’s poverty? [13 Oct 2011]
Unit 2 Macro: Can Exports Drive a Recovery? [13 Oct 2011]
Skidelsky in Madrid [12 Oct 2011]
The Return of Protectionism? [12 Oct 2011]
Unit 4 Macro: USA edges closer to naming China as a “Currency Manipulator” [4 Oct 2011]
Unit 4 Macro: Protectionism [3 Oct 2011]
Unit 4 Macro: When China Met Africa [1 Oct 2011]
Unit 4 Macro: Bangladesh and Comparative Advantage in Textiles [19 Sep 2011]
Unit 2 Macro: Economic Growth and Inequality [14 Sep 2011]
Unit 4 Macro: Baltic Dry Index and Global Weakening [19 Aug 2011]
A surprising example of trade between the USA, China, and Korea. [19 Jul 2011]
Protection of British jobs? [1 Jul 2011]
UK firms wake up to Brazilian opportunities [21 Jun 2011]
Evan Davis ‘Made in Britain’ - and a new trade data tool to play with [21 Jun 2011]
Six Global Trends Shaping Business Strategy [15 Jun 2011]
Do you agree that the government should provide support to the UK car industry? [12 Jun 2011]
Invisible Exports - Originating Journalist is remembered [27 May 2011]
Do tariffs actually reduce imports? [26 May 2011]
AS Macro Key Term: Supply-Side Policies [25 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AQA A2 Economics - European Context [23 May 2011]
Unit 3 Micro: Monopsony Power in Markets [19 May 2011]
A2 Macro: Revealed Advantage [12 May 2011]
Video Clips on the Chinese Economy [1 May 2011]
UK Economy at a Glance April 2011 [17 Apr 2011]
AS Macro Key Term: Economic Structure [6 Apr 2011]
AS Macro Key Term:  Balance of Payments [6 Apr 2011]
AS Macro Key Term: Current Account Deficit [2 Apr 2011]
AS Micro Revision: Banana Prices [1 Apr 2011]
OCR F585 June 2011: Competitiveness [31 Mar 2011]
Pacific Peso Reaches 29 Year High! [30 Mar 2011]
Keeping Track of UK Macro Objectives [18 Mar 2011]
Focus on Spain [16 Mar 2011]
Timetric: UK Balance of Trade with China [13 Mar 2011]
Dambisa Moyo - How the West was Lost [11 Mar 2011]
Timetric: UK Balance of Trade in Oil [6 Mar 2011]
Timetric: Trade Balance in Manufactured Goods [4 Mar 2011]
Timetric: UK Trade in Goods and Services [3 Mar 2011]
EU Economics: Germany leads Euro Zone revival [25 Feb 2011]
Protectionism and the demise of the US shipping industry [24 Feb 2011]
Unemployment in Germany and Spain [14 Feb 2011]
The US-China Trade Deficit [14 Feb 2011]
China and Africa - Resources on their relationship [14 Feb 2011]
Economics Q&A: Should the CAP be scrapped? [14 Feb 2011]
Mo Tanweer on Global Currency Wars [10 Feb 2011]
Balance of Payments Data - Free Chart Download [9 Feb 2011]
David Smith on Shifting Sands in the Global Economy [8 Feb 2011]
EU Economics: Hopes for a low carbon future in Europe [3 Feb 2011]
Globalisation - Peering into the MIST? [1 Feb 2011]
WTO finds Boeing guilty of using illegal subsidies [1 Feb 2011]
5 Fresh Links: Reforming the EU Common Agricultural Policy [25 Jan 2011]
Changes in Real Prices [24 Jan 2011]
The US-China power balance, trade and currencies [22 Jan 2011]
Economics Q&A: Will the rise in VAT harm the UK’s economic performance? [17 Jan 2011]
Economics Q&A: What economic factors affect the demand for new cars? [9 Jan 2011]
Economics Q&A: Does the UK economy achieve a trade surplus in anything? [6 Jan 2011]
Economics Q&A: Why might Europe’s weaker economies struggle to grow in the next few years? [2 Jan 2011]
EU Economics: European 2011 Revision Guide Launched [31 Dec 2010]
EU Economics: EU Economy in Charts Jan 2011 [29 Dec 2010]
OCR A2 Economics F585 (Feb 2011) - Suggested Reading [7 Dec 2010]
EU has to reduce its import barriers [4 Dec 2010]

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