[Lambswool tax] The U.S. and Canada are members of the World Trade Organization and GATT. Frustrated by the tough competition from Canadian suppliers, Lambswool suppliers in the U.S. have pressured Congress to pass a law requiring importers to pay a tax per pound of lambswool imported to the U.S. and restricting the number of pounds of lambswool imported from specific countries, including Canada. Wholly Wool, Inc., is a Canadian company that sells lambswool that is nearly identical to lambswool produced and sold in the U.S.
-What type of trade barrier is the lambswool tax?

Question

Quizplus · Accepted Answer

The lambswool tax is a tariff because it is a tax imposed on imported goods, in this case, lambswool, which increases the cost of imported goods to make them less competitive with domestic products.

[Lambswool Tax] the U