When tariffs are in place, what is the effect on foreign goods?

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When tariffs are imposed, they increase the cost of imported goods by adding a tax to their price. This typically makes foreign goods more expensive compared to domestically produced goods. As a result, foreign products become less competitive in the market because consumers are likely to choose the cheaper domestic alternatives. The higher cost associated with tariffs discourages consumers from purchasing these imported goods, leading to a decline in their demand. In this way, tariffs protect domestic industries by reducing competition from foreign markets.

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