Explain the concept of tariffs as a trade barrier.

Explain the concept of tariffs as a trade barrier.

Tariffs are a type of trade barrier that involves the imposition of taxes or duties on imported goods. They are implemented by governments to protect domestic industries and producers from foreign competition. Tariffs increase the price of imported goods, making them less competitive compared to domestically produced goods. This encourages consumers to purchase domestic products, thereby supporting local industries. Tariffs also generate revenue for the government. However, they can lead to higher prices for consumers, reduced choices, and potential retaliation from other countries through the imposition of their own tariffs.