Tariff
Definition
A tax on imported goods. Raises domestic prices, protects local producers, hurts consumers, and creates deadweight loss.
Example
A 25% tariff on imported steel raises the price of imported AND domestic steel.
A tax on imported goods. Raises domestic prices, protects local producers, hurts consumers, and creates deadweight loss.
A 25% tariff on imported steel raises the price of imported AND domestic steel.