Question

Should a tariff be imposed on the importation of oil to promote domestic production and reduce reliance on foreign supply? a) Yes, to protect domestic industries and energy security b) No, to promote free trade and lower consumer prices c) Yes, but only on certain types of oil d) No, because tariffs can lead to trade conflicts and economic inefficiencies

Answer 1

C) Yes, but only on certain types of oil.

Imposing tariffs on specific types of oil can be a strategic approach to encourage domestic production and reduce reliance on foreign supply. This can safeguard domestic industries, ensure energy security, and promote self-sufficiency in critical areas. However, blanket tariffs can lead to trade conflicts and economic inefficiencies, hence targeting specific types of oil allows for a more nuanced and effective policy.