Tariffs usually function as trade restrictions or barriers set
by the government to restrict imports or exports from certain
nation's.
But these trade barriers seriously impact international trade
as they may harm the producers or consumers of a nation directly or
indirectly.
Tariffs when imposed on imports might harm the domestic
consumers who depend on them as it raises the price of foreign
goods and services while it might benefit the domestic producer's
who can now sell their goods at higher prices.
Similarly when it is imposed on exports, domestic producer's
are worse off as foreign goods and services become more
cheaper.
In both ways, it leads to higher prices which might decrease
the quantity of available output.
Hence, this will also result in lower output and higher
employment rates within a nation.