Taxing Times for Exporters: GCSE Business In The News

Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers.

What's the story?

The United States is implementing new steel and aluminium import tariffs of 25%. Previously, countries such as Canada, Mexico and Brazil, as well as trade blocs like the European Union, have been exempt from such barriers to trade.

This policy shift affects three major sectors of the US economy.

In the food and beverage industry, can manufacturers, who rely heavily on imported steel, anticipate price increases for consumers, particularly affecting canned foods and drinks.

The automotive sector faces significant challenges, with major manufacturers previously experiencing billion-dollar cost increases under similar tariffs. Analysis suggests potential vehicle price increases, particularly if additional tariffs on Canadian and Mexican goods take effect.

The construction and housing industry, as a primary steel consumer, expects the tariffs to impact building and make new homes less affordable. Previous tariffs on steel in 2018 caused substantial cost increases for appliance manufacturers such as Whirpool.

The overall economic impact suggests that consumers will likely bear much of the cost burden across these sectors through higher prices for everyday goods and major purchases.

Taxing times for exporters