Does a tariff on imports also reduce exports? Imports are goods that were made in one country and is going to a different country to be sole. Exports are goods that were made in one country and is being sent to be sold in another country. They are like coming in goods and going out goods. Tariffs are taxes that are put on goods if someone in one country wants to sell the goods in another country. The sellers have to pay the government a tax to sell their goods in another country,
Does a tariff on imports also reduce exports? Yes it does. If someone wants to sell their goods on another country, but doesn’t have enough money to, then they won’t sell their goods. They might not want to pay the taxes because it’s a risk. If they don’t sell enough of their goods to make their money back, then they would have wasted their money. It’s a risk to pay the tariff if your product is not that good. That is why some people don’t sell their goods in other countries.