In the context of international trade, what is the primary purpose of tariffs?

The primary purpose of tariffs in international trade is to increase the cost of imported goods. By imposing tariffs, governments can make foreign products more expensive than domestic ones, encouraging consumers to purchase goods produced within their own country. This mechanism serves as a way to protect local industries from foreign competition, as it can lead to increased sales for domestic manufacturers who may struggle to compete with lower-priced imports.

While promoting local businesses is indeed a secondary effect of implementing tariffs, the direct action of raising costs on imports is the primary goal. Tariffs directly affect price levels, making imported goods less attractive to consumers. This can result in higher revenue for the government that imposes them, as well as support for domestic industries by creating a pricing advantage for local producers.

Discouraging foreign investment and standardizing product safety are not the main functions of tariffs. Foreign investment may be influenced by other factors such as market conditions, regulatory environment, and economic stability, while standardizing product safety typically involves regulations and standards unrelated to tariff structures.