Imposetariffsonacountry'seconomyandsocialwelfareoftheaffectedperformanceinthefollowingareas.Firstistheimpactoftheimportingcountryconsumers,itraisedthepricesofimportedgoods,anincreaseoftheburdenofconsumers.Ontheonehand,consumerdemandduetopriceincreasesandreducetheotherhandevenifconsumersdonothavetobuyhigherpricesofimportedgoods,butalsotohigherpricesfortheirproducts.Second,importtariffswillincreasethegovernment'staxrevenues,theincomeoftheGovernmenttoincreasetheimporttariffofdirectforce,buttheincomefromtheirfullburdenonconsumers.Third,theimporttariffstoprotectdomesticandimportedgoodscompetitivesector.Tariffsbroughtaboutbyhighprices,willenableconsumerstogiveuppartofimportedgoodsinturnchoosedomesticsimilargoods,whichwillpromotetheirsalesofsimilargoods.Finally,importtariffswillcausethedomesticredistributioneffect.Relativetootherconditionsremainunchanged,intheoryanalysis,tariffssothatconsumerswillinevitablyshifttotheincomeofproducers,tariffs,producersandgovernmentrevenueshaveincreased,decreasedconsumerincomeandConsumersthanthelossofnationalproducersandtherevenuegeneratedbytheGovernmentmore,thislossisnoonecanbeobtained.Soreductionoftariffs,althoughtheproducersandgovernmentrevenuewouldbereduced,butthecaseisgoodnewsforconsumers.
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