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: 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. When a country imposes tariffs on another, the other nation can choose to retaliate by placing barriers of its own. This cycle leads to a trade war that is never good for either economy. A good example is the trade war between China and the United States that started in 2018 with President Trump. In some cases, a severe trade war may even promote xenophobic tendencies. Case Study: