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How to tariffs act as barriers to trade?

User Lloyd Dominic
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1 Answer

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Tariffs have always been quite a controversial topic within history. Historically, the South despised tariffs while the North was in favor of them.

If you don't know what tariffs are already, they are essentially a tax put on foreign goods. Buying overseas means there would be a tariff on it and foreign countries buying from you means they would also have to pay a tariff. This was to help businesses within the country, as people would buy locally instead of overseas because it was cheaper.

Tariffs are a protectionist trade barrier. It helps businesses within the country but makes it hard to trade and buy overseas. This greatly angered the South during this time, as they sold their crop overseas and also bought from foreign countries. Tariffs would make their products less desirable to foreign countries. On the other hand, this helped the North, as they had a lot of industries during this time. The tariffs would force people to buy from their businesses as opposed to foreign ones.

User Zeina
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