Question

Why are tariffs rarely successful job creation tools for wealthy countries?

Answer 1

Tariff is a tax or duty levied on goods imported from other countries. Tariffs make the imported goods more expensive as compared to the domestc goods. So in this way domestic producers are protected against the foreign competetion as their goods are cheaper as compared to the similar foreign goods due to tariffs, which encourages the producers to produce more and thus creating jobs and employment in the nation. But in wealthy countries people could afford even the expensive goods, so production of domestic goods can not be influenced with making foreign goods more expensive by imposing tariffs that is why tariffs are rarely successful as job creation tools for wealthy countries.