When a country imposes tariffs,it is likely to cause

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When a country imposes tariffs, it makes imported goods more expensive compared to domestically produced goods, which can increase demand for domestic goods. Higher prices for import-competing goods both domestically and abroad are likely to result from tariffs. Import quantities may decrease due to tariffs, which could lead to higher prices for domestic production to meet the demand gap. Tariffs do not directly affect the prices of exports or the quantity of exports.

When a Country Imposes Tariffs,it Is Likely to Cause