Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies.This is because, unlike domestic subsidies, import tariffs and quotas

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Import tariffs and quotas limit the choices available to domestic consumers, potentially forcing them to pay higher prices for goods that are available at lower prices from foreign producers. This results in a loss of welfare for the domestic economy, as consumers are worse off and less efficient home production is incentivized, leading to higher costs and potentially lower quality goods. In contrast, domestic subsidies may distort market prices and incentivize overproduction, but they do not directly limit consumer choice or harm the overall welfare of the economy as much as import tariffs and quotas.

Tariffs and Quotas on Imports Tend to Involve Larger Sacrifices