Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices due to increased competition, and as a result,domestic consumers pay higher prices.
Tariffs hurt consumers because they increase the price of imported goods. Because an importer has to pay a tax in the form of tariffs on the goods he is importing, he passes this increased cost on to consumers in the form of higher prices. A tariff is a tax applied to an imported good with the intention of limiting the volume of foreign imports,protecting domestic employment,reducing competition among domestic industries, and increasing government revenue. An increasing level of imports and a growing trade deficit can have a negative effect on a country's exchange rate. A weaker national currency stimulates exports and makes imports more expensive conversely,a strong national currency hinders exports and makes imports cheaper.
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