While Attending the World Economic Forum in Davos, Switzerland in January

Multiple Choice

While attending the World Economic Forum in Davos, Switzerland in January 2020, President Trump threatened to impose tariffs on European automobiles if he could not negotiate a free trade deal with the European Union (EU) , sparking backlash from EU officials and company executives. Trump has credited tariffs with helping to work out better trade deals with China, Mexico, and Canada, and believes the same can happen with the EU. Although not specifying a timeline for the possible auto tariffs, Trump did announce that he had reached a deal with French President Emmanuel Macron to delay a digital services tax against U.S. tech companies until the end of 2020 after threatening a 100% tariff on French wine.
Source: Jacob Pramuk, " Trump says he is serious about slapping tariffs on European cars if he cannot strike a trade deal," cnbc.com, January 21, 2020.
-Refer to the Article Summary. All else equal, if the Trump administration decides to implement a tariff on European automobiles, the price of imported automobiles in the United States will ________ and the quantity of imported automobiles demanded in the United States will ________.

A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease