Tariffs on imported goods can cause businesses to raise consumer prices by passing some or all of the import tax costs onto consumers.
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mechanism
General effect of import tariffs on consumer prices via cost pass-through.
Tariffs are taxes imposed on imported goods (an import tax).
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definition
General definition of a tariff in trade and public finance.
Tariffs on imports tend to raise the prices paid by domestic consumers who purchase those imported goods.
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economic
Typical economic effect of import tariffs on domestic prices.
Tariffs on imported goods can contribute to higher consumer prices for the affected products.
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causal
Trade-policy mechanism by which import duties can raise costs passed on to consumers.
Removing or reducing tariffs can increase the supply of imported goods entering a market and can potentially lower consumer prices for those goods.
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causal
Trade-policy change that affects import supply and consumer prices.