How do tariffs influence trade policy? 🔊
Tariffs influence trade policy by imposing taxes on imported goods, making them more expensive for consumers and potentially protecting domestic industries from foreign competition. Governments may use tariffs to achieve various economic objectives, such as balancing trade deficits, promoting local production, or responding to unfair trade practices. However, tariffs can also lead to trade disputes and retaliation, ultimately impacting international relations and the overall global economy.


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