NAFTA has been in place for several years now. Assume that the USA decided to increase tariffs on all imports from Canada and Mexico. Based on the "effects of a tariff" model presented in class, we know that US producer output would increase, imports would decline, and prices would rise.
Using this information answer the following question:
Would you agree with such a move by the USA?
If so, why? If not, why not?
What economic arguments can you present in support of your position?
Elaborate on your position.