Question

What impact did the tariff that country A imposed on country B have?​

Answer 1

Answer:

Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result.

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Answer 2

Answer:

Country B imposed a tariff on country A’s goods to retaliate for country A’s tariffs. So, while incomes increased for farmers in country A, the country’s manufacturers lost a substantial amount of export business. The manufacturers closed, and their employees lost their jobs. Ultimately, country A’s regulations had an unfavorable effect on the country’s own economy. Additionally, the tariff may have harmed country A’s reputation as a trade partner and affected its future trade prospects.

Explanation: