Question

Were the results of the U.S. tariff increase on imported small Japanese truck imports consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly?

Answer 1

Answer:

The tarriff increase wasn't consistent.

Explanation:

Higher U.S. tariffs on Japanese car exports are less likely now the two nations agreed to start new trade talks, economists said, but most think U.S. trade friction with China and other economies will have a significant impact on Japan.

The United States had threatened to slap 25 percent tariffs on auto exports from Japan but Washington agreed not to do so while fresh trade talks are underway.

President Donald Trump has made clear he is unhappy with Japan's $69 billion trade surplus with the United States nearly two-thirds from cars and wants a two-way agreement to address it.