What would happen if the EU put tariffs on bananas?

Answer 1

Tariffs are forms of proctectionism or trade barriers. By imposing tariffs, it can affect the market for bananas in EU and also the country which it imports from. From my understanding, there can be many effects from the tariffs and it can be analysed from a very complicated perspective using graphs. Generally, the buyers in EU will face a higher price of imported bananas, while the sellers in EU can benefit from the tariff, as more can be sold by the domestic seller to the domestic buyer. A tariff increases the price of the imported bananas as it's a cost to the importer. A tariff imposed will also mean that there is a tax revenue from the tariff to the EU government. For exporter of bananas to EU, they experience higher cost, and unfair trade practices. Hope this helps (cheong@bgymail.gd.cn)