Economics Week 13 Tariffs

Prompt:  “Does a tariff on imports also reduce exports?”

Tariffs discourage foreign producers from shipping their products to the US. If they have to pay extra to ship their products to the US they’ll have an incentive to sell elsewhere. The individual producers will then have a friendly rapport with the alternative country they are selling to, and are more likely to buy from that country over the country with the tariffs. This reduces exports, and slows down both production and consumption within the US.

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