A Canadian tariff imposed on items that can be produced more cheaply abroad

Question

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When a tariff is imposed on items that can be produced more cheaply abroad, a social loss is created. This loss occurs because Canadian consumers pay higher prices for the goods, making them worse off, while domestic producers gain a larger market share and higher profits. The tariff does not benefit Canadians by making these goods cheaper nor does it make the goods more expensive in foreign markets. It also does not necessarily equalize the cost of production between Canada and foreign producers.

A Canadian Tariff Imposed on Items That Can Be Produced