Protectionist Tariffs

While Economists generally agree that free trade creates more winners than loser, policymakers don’t always agree, and turn to protectionism to shelter domestic producers from foreign competition.

A tariff is one form of protectionism employed around the world by governments to shelter domestic firms from cheap imports. This lesson examines the impact tariffs have on the market for an imported good and evaluates their effect on different stakeholders, including consumers, producer and the government.


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