Tariffs placed by a foreign country on the import of U.S. goods are often the motivation for joint ventures between U.S. firms and firms in that country.

Question

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When a foreign country places tariffs on U.S. goods, it makes it more expensive for U.S. companies to sell their products in that country. To mitigate this cost, U.S. firms may partner with a company in that country to create a joint venture. This allows the U.S. company to still sell their goods in that country but with the added benefit of having a local partner who understands the market and regulations.

Tariffs Placed by a Foreign Country on the Import of U.S