Answer to Question #80875 in Macroeconomics for konstable

Question

Using an appropriate diagram, discuss the economic effects of a tariff

Answer 1

Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result. Tariffs also reduce efficiencies by allowing companies that would not exist in a more competitive market to remain open.
https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp#ixzz5R4dOpDRl