It was the US which first filed a case with WTO against EU in 2006.then EU also filed a counter case against US.WTO has ruled that both side unfairly subsidized.WTO gave green light to the US Government to impose 10% tariff on EU goods & 25% tariff on other product.WTO process to negotiate a comprehensive agreement eliminating subsidies to maximum extend.This should protect the parties imediate interest,avoid the trade war,further push free trade.   Government influences the trade policy as follows:- 1.Quota system:-a quota is a government imposed trade restrictions that control the volume of trade between the countries.Government impose quota on some specific imported product so that imported product demand decreases & domestic production increases. Tariffs:-is a duty or tax imposed by the government of a country upon the traded commodity as it crosses the country traiffs can be levied upon both export & impot.following are the different types of tariffs:-export duty,import duty,custom dutyetc. Subsidies:-is a transfer of money from government to its public in many ways.for example:-when govt. gives money to the farmer for their crops at a higher price than market price and afterward send these crop to poor population. Conclusion from economic analysis of effect of import tariff:- is it helps in deveopling domestic market,help in promoting domestic product,reduce competition from outside of the country,increase in per capita income,enhance standard of living, make the people self sufficient.