How tariffs provide advantages to some and disadvantages to others?

Answer 1

Advantages:

• Tarrifs reduce international competition against small firms, businesses and workers in the country where tariffs are placed on imports, so those small firms can stay and provide jobs and incomes for the country's citizens
• Balance of trade deficit is made less prominent
• Prices of imports become expensive so people would opt for local goods
• Tariffs are a kind of tax, so it is still a source of income for the government

Disadvantages:

• The countries and the multinational companies might be discontented with their products being charged higher and will stop supplying
• If the tariff is to high, imported inflation will occur (prices of imports will rise continuously)
• Tariffs mean an additional cost to the producer of goods as they must now pay a greater percentage of the value of their goods on tariffs placed on the goods that they import into a country