Title: Why Do Countries Impose Tariffs? - WorldAtlas
Headings: Why Do Countries Impose Tariffs?
Why Do Countries Impose Tariffs?
Functions of Tariffs
Side Effects of Tariffs
Case Study: China–US Trade War
The Tariff Debate

Content: In fact, currently, President Trump has been a strong advocate of tariffs to generate income. However, it should be noted that they do not generate that much income compared to other sources. Aside from revenue, tariffs can be used as a means of negotiation. If two countries trade, then one of them may impose tariffs to get the other one to reduce or remove trade barriers that may be present or force the other country to agree to something. Side Effects of Tariffs
Despite their best intentions, tariffs can actually cause some negative consequences. For example, by reducing external competition, local companies and industries may become less efficient and innovative. This may eventually trickle down to the end consumer because a lack of competition means a monopoly, which translates to increased prices. Tariffs can also generate tension if they are deemed to favor some industries or regions. For example, a tariff that favors firms in the city may end up hurting those in rural areas. Just like above, the end consumer may also be forced to pay more for the product.