A U.S. tariff on French wine will likely benefit U.S. wine producers and the U.S. government (by increasing tax revenue), but harm U.S. wine drinkers and French wine producers.

Question

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The tariff would make French wine more expensive for U.S. consumers, potentially leading them to switch to domestically-produced wines. Meanwhile, French wine producers might see a decrease in demand from the U.S. market, negatively impacting their sales. Additionally, the U.S. government would collect additional revenue through taxes on the imported French wine.

A US Tariff on French Wine Will Likely Benefit U