Question

What is the long-term effect of tariffs or other trade barriers?

Answer 1

trade barriers and tariffs limit international trade between countries. Generally in the short term this increases domestic prices and decreases domestic quantity. But in the long run things can get even worse! Because of barriers to trade there is less international competition which means domestic firms can get lazy and this can lead to inefficiencies and slower rates of innovation! let me know if this helps @pmorris