If a tariff increases, everybody loses except the government imposing the tariff.

Question

Quizplus · Accepted Answer

When tariffs are imposed, the prices of goods that are imported into the country increase, resulting in a loss for consumers who have to pay more for those goods. It also restricts businesses from importing goods at a competitive price, resulting in a loss for businesses. The only entity that benefits from tariffs is the government, as they generate revenue from the tariffs.

If a Tariff Increases, Everybody Loses Except the Government Imposing