**Commentary** - Tariffs are a tax or duty to be paid on a particular class of imports or exports. - Tariffs on international trade is a form of protectionism. - Protectionism refers to intervention in the form of government policies that restrict and regulate international trade in order to help domestic industries. - One of the reasons it is implemented is with the aim of improving economic activity within a domestic setting - specifically to support local economies. **Tariffs on international trade are important to support local economies because:** - It protects certain industries, safeguarding and creating more jobs. One example of this is Trump imposing a tariff on [steel imports](https://en.wikipedia.org/wiki/Trump_tariffs) to protect jobs in the US steel industry. - Protects against international competition - Money stays within the local economy as consumers are encouraged to buy local produce as opposed to its more expensive imported alternative. **Adverse effects** - Lack of competition often leads to industries being able to hike up their prices - this may benefit the company economically but have the opposite effect on the local community who may struggle to afford their products and services. - Higher prices may lead to lower overall demand, thus causing job losses and increased unemployment, then even fewer customers who can afford the prices, leading to a spiral of economic downfall. - Other nations may retaliate with trade bans or tariffs of their own, and revenue gained from exporting from the local community may decrease.

**Who pays for tariffs?** YOU DO! - Trump tariffs on steel in 2018 caused an 8% rise this equates $5.6 billion increase. - before Trump, the 2002 steel tariffs cost 200000 US jobs as people just couldn't afford the monopolistic pricing. - trumps not the only one at fault Obamas tyre tariffs saved 1200 jobs at the cost of $90000 per job. The knock-on effect cost 4000 jobs in various other industries. - The washing machine tariffs raised the price by $86 on average due to lack of competition it protected some jobs about 1800 at the cost of $1,5 dollars a year. - Douglas Irving found that productivity decreases in industries with tariffs