What is one potential impact of implementing tariffs on international trade?

Implementing tariffs on international trade leads to higher prices for imported goods, which can serve to protect domestic industries. When a government imposes a tariff, it effectively increases the cost of importing foreign products. This higher cost is often passed on to consumers in the form of increased prices for those imported goods.

As a result, domestic consumers may shift their purchasing decisions towards locally produced goods, as they become relatively cheaper compared to the now more expensive imported products. This protection can help domestic industries grow and maintain their market share against foreign competition, leading to potential job preservation or creation within those industries. By making imported goods less competitive in terms of price, tariffs can help strengthen the domestic economy in certain sectors, although they may also lead to retaliation from trading partners or other economic ramifications.