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Champagne and Cheese Tariff

December 3, 2019champers

US threatens 100% tariffs on French cheese and champagne.

Questions
  1. What is the value of the French products that could be subject to the new 100 percent tariff?
  2. How will a tariff by the United States on French cheese influence the price and the quantity purchased in the United States?
  3. Who in the United States wins from the tariff on French cheese? Who in the United States loses from the tariff on French cheese?
  4. Is the tariff on French cheese in the social interest?
  5. Draw a diagram to illustrate your answers to #3 and #4.
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