Question

Problem 1

Answer 1

Introduction

A tariff is a levy that one nation levies on products and services received from the other. Imports are restricted via tariffs. Plainly expressed, they raise the cost of imported products and services, rendering them less appealing to local customers. A significant aspect to remember is that the tariffs imposed have an unintended impact on the exporting country since the home customer may be hesitant to buy their goods owing to the price rise. If the domestic customer continues to prefer the imported goods, the tax has effectively increased the local customer’s expense.