Import tariffs in the United States are likely to reduce U.S. exports, both because of the resulting decrease in foreign earnings of dollars from exports to the United States and because of the likelihood of increases in other countries' import restrictions against U.S. goods.

Question

Quizplus · Accepted Answer

Import tariffs can lead to retaliation from other countries, which can then limit exports from the United States. This means that the decrease in foreign earnings of dollars from exports to the United States and the increases in other countries' import restrictions against U.S. goods are likely to reduce U.S. exports. Therefore, the statement is true.

Import Tariffs in the United States Are Likely to Reduce