Question

How does a tariff affect domestic (home)

manufacturing?
tain
It encourages foreign buyers to purchase
American goods.
ade
ts
roll.
It lowers the prices of raw materials, lowering
their costs.
It raises the price of foreign goods and
therefore makes their own goods more
attractive.

Answer 1

Tariffs increase the prices of the most important goods. Because of this domestic producers are not forced to reduce their prices from increased competition and domestic consumer are left playing higher prices as a result