Tariffs increase government revenue, discourage the sale of imported products, and raise prices for consumers.

Question

Quizplus · Accepted Answer

Tariffs are taxes imposed on imported goods. Therefore, they do increase government revenue. They also raise the price of imported products, making them less attractive to consumers and discouraging their sale. Since imported goods become more expensive, domestic goods may become more competitive, and domestic companies might increase production. However, the downside of tariffs is that they also increase prices for consumers who rely on these imported products, as the tax is ultimately passed on to the consumer.

Tariffs Increase Government Revenue, Discourage the Sale of Imported Products