Vehicles and automobiles are one of the most fundamental imports of the USA. The number of cars transferred to the country from abroad has increased in the past decades (Samuels, 2019). The USA is one of the leading net importers in the world of goods and has become the world’s most significant net importer of cars in the last several years. Such transactions benefit the country due to buying the goods in countries where they are cheaper and selling in America at affordable prices. It buys cars from Japan, Germany, Canada, Mexico, South Korea, and others. The formula for calculating net import is subtracting the total value of an export from the total value of an import. Thus, the country’s value of net imports in the car industry in 2020 was about $97 billion, and net export nearly -$97 (OEC, 2021). Such transactions improve American imports, which benefits it, and decreases vehicle export, which leads to a higher value in net imports and an extremely low net export in the industry.
The USA is one of the most considerable exporters of soybeans in the world. Such a good is in high demand worldwide due to its usage in many dishes around the globe. The formula for calculating net export is the value of total imports subtracted from the total value of exports. Thus, the US net export value is about $27 billion, and the value of net imports is -$27 (U.S. Department of Agriculture, 2022). These transactions improve American export, making the value of net export $27 billion and decreasing the import of the crop, making its value -$27 billion (U.S. Department of Agriculture, 2022). A tariff means a tax implemented on goods to benefit from it and protect industries (Mankiw, 2018). It is imposed on imported goods to lessen the competition between them and local businesses. However, it may have a negative impact: companies in a country may make their services less proper and qualitative due to the lack of competition. Tariffs are spread worldwide and regulated by every government according to the desired outcome (Kenton, 2022). For consumers, this approach is harmful: they have to pay a higher price and have no benefit from it.
Reference
Kenton, W. (2022). Tariff. Investopedia. Web.
Mankiw, G. N. (2018). Principles of Macroeconomics. Boston, MA: Cengage Learning
Cars in the United States. (2021). OEC. Web.
Samuels, C. (2019). History of car imports into the U.S. Trade Risk Guaranty. Web.
Soybean 2021 export highlights. (2022). U.S. Department of Agriculture. Web.