Overview
Tariffs are taxes imposed on imported goods, which can significantly impact trade dynamics. They are often used by governments to protect domestic industries from foreign competition, but they can also lead to higher prices for consumers and strained international relations. Understanding the effect...
Key Terms
Example: The government raised tariffs on steel imports.
Example: Protectionism can lead to higher prices for consumers.
Example: A trade surplus occurs when exports exceed imports.
Example: The country set an import quota on sugar.
Example: The trade war escalated with both countries imposing tariffs.
Example: The government provided subsidies to farmers.