Governments impose tariffs primarily to make foreign goods more expensive in order to protect domestic industries.
Tariffs are taxes or duties imposed on imported goods by governments. The main objective of tariffs is to protect domestic industries from foreign competition. By increasing the price of imported goods, tariffs make them less attractive to consumers compared to domestically produced alternatives. This protectionist measure aims to support and promote the growth of domestic industries by giving them a competitive advantage.
Tariffs serve as a barrier to entry for foreign goods, effectively making them more expensive for consumers. This can encourage consumers to choose domestically produced goods, thereby boosting the sales and profitability of local industries. By imposing tariffs, governments seek to safeguard domestic jobs, promote economic self-sufficiency, and foster the growth of strategic industries. However, it's worth noting that tariffs can also have potential downsides, such as trade retaliation from other countries and higher prices for consumers who rely on imported goods. Therefore, governments must carefully balance the benefits and drawbacks of tariffs when implementing such measures.