What is one of the main economic effects of a tariff increase?
Answer (2)
Well if a tariff is unreasonable or is too high, then people will be unhappy and they will rebel against the government.
An increase in tariffs raises the prices of both imported and domestically produced goods, leading to higher costs for consumers. Domestic producers may capitalize on this reduced competition by also raising their prices. Overall consumption may decrease as a result of these price increases.
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