Suppose that the U.S. imposed tariffs on imports of steel and aluminum from China and China retaliated with tariff on imports of agricultural from the U.S. Both the U.S. and China are “large” countries. In theory, was this trade war really good? If so, to whom in each country? If not, to whom in each country? (1 point)
In theory, was this trade war good to the overall national welfare of the United States and of China? (0.5 points)