Question

Jose, the owner of a citrus farm in Mexico, discovers the United States is offering a new larger tariff on the import of Mexican-grown oranges. A tariff is a bonus paid to foreign companies by the American government on imported products. Is this statement true or false?

Answer 1

Tariffs are taxes imposed on imported goods and services. The United States is offering a new larger tariff on the import of Mexican-grown oranges.

Step-by-step explanation:

Tariffs are taxes that governments impose on imported goods and services. They make imports more expensive for consumers, which discourages imports. The statement that the United States is offering a new larger tariff on the import of Mexican-grown oranges is true.

The statement is false. A tariff is not a bonus paid to foreign companies by the importing country's government. Instead, a tariff is a tax imposed by the importing country on imported goods.

In this context, if the United States is imposing a larger tariff on the import of Mexican-grown oranges, it means that the U.S. government is imposing a tax on those oranges as they enter the United States. Tariffs are often used as a trade policy tool to protect domestic industries, raise revenue, or address other economic objectives.