Wednesday, November 23, 2016

Wall Board (Sheet Rock) Tariffs Levied by Canada.

I am kinda bored on Thanksgiving Eve.  Read this article on tariffs Canada is going to levy on Wall Board (Sheet Rock) that is used to finish out walls in houses and other structures. Gotta have it if you want to build a house!

Canada accused US producers of Wall Board of "dumping" the product in Western Canada a prices "below cost".  The suggestion is that US producers are trying to out price Canadian producers and put them out of business.

"""A new trade dispute has broken out between Canada and the U.S. that threatens to raise prices in Canada’s already overheated housing markets. 
The Canada Border Services Agency imposed a provisional tariff as high as 277 per cent on U.S. drywall imports in September after ruling that manufacturers were dumping the product, or selling it below the price in their home market, undercutting local suppliers. 
The tariff has raised the price of drywall, or gypsum board as it’s also called, by as much as 30 per cent and is causing “chaos” and delays as contractors scramble for alternative sources. 
Some builders say the tariff could add as much as $13,000 to the cost of a new home, which would amount to a $2.6-billion increase to the roughly 200,000 homes built in Canada each year.""" (from Globe and Mail)
Here are some graphs I made to go along with the article.  Tariffs are a tested concept on the AP Microeconomics test so hopefully this will be helpful to someone.














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