Question

When tariffs are imposed, the losers include domestic consumers and the domestic government. foreign consumers and domestic producers of import-competing goods. domestic consumers and domestic producers of import-competing goods. domestic consumers and foreign producers?

Answer 1

When tariffs are imposed, the losers include domestic consumers and foreign producers. A tariff is a tax that is imposed on different imports or exports. When these taxes are added the consumers wanting to purchase the item are going to pay more for it because of the added tax. This also hurts foreign producers because their products cost more for those in the country they are being imported into making some people want to stay away from purchasing the item.