Title: What Are Disadvantages of Tariffs?
Headings: What Are Disadvantages of Tariffs?
What Are Disadvantages of Tariffs?
Content: What Are Disadvantages of Tariffs? What Are Disadvantages of Tariffs? By Staff Writer Last Updated Mar 30, 2020 11:19:51 PM ET
One of the major disadvantages of tariffs is that they raise the price of imports, leading to a decrease in consumer surplus. Tariffs discourage competition, leading to decreases in product quality. In addition, high tariffs may lead to trade wars between nations. Tariffs may make local industries less efficient due to reduced global competition. They may also lead to trade wars as exporting countries counter with their own tariffs on imported products. When trading counterparts reciprocate with their own tariffs, it raises the cost of doing business for exporters. This situation may also compromise the quality of goods and services as industries look for ways to cut production costs. A tariff refers to a tax imposed on products and services.