Question

What is a tariff? Explain and give an example.​

Answer 1

Answer:

Tariffs are generally introduced as a means of restricting trade from particular countries or reducing the importation of specific types of goods and services. For example, to discourage the purchase of Italian leather handbags, the U.S. government could introduce a tariff of 50% that drives the purchase price of those bags so high that domestic alternatives are much more affordable.

Explanation:

Answer 2

It’s a tax on foreign goods that is implemented in order to encourage and promote the buying of domestic goods. For example, let’s say a shirt made in America costs $10. But now, China starts making shirts, they ship it to the USA, and it only costs $8. Logically, people will buy the Chinese shirt. But that will ruin the American businesses who made their shirts. So, the government puts a tariff on the China shirts which now makes them $15, so now Americans will want to buy the American shirts