Understanding Tariffs and Their Impact

What is a tariff?

• A fee for domestic sales

• A discount on exports

• A tax on imported goods

• A subsidy for exporters

Who is initially responsible for paying the tariff?

• The importer

• The consumer

• The exporter

• The government

Which organization collects tariffs in the United States?

• Department of Commerce

• Federal Reserve

• Customs and Border Protection

• Internal Revenue Service

What percentage of federal revenue did tariffs account for in fiscal year 2024?

• 20%

• 10%

• 5%

• 1.5%

Why were tariffs a major source of U.S. government revenue in the 18th century?

• They protected new industries

• They were easy to collect

• There was no income tax

• They encouraged exports

What is one reason tariffs are less common today?

• They are unpopular with consumers

• They are not effective

• They have been replaced by income tax

• They are difficult to collect

What was the impact of the Smoot-Hawley Tariff Act?

• It increased federal revenue

• It reduced the trade deficit

• It led to retaliatory tariffs

• It boosted the U.S. economy

How do tariffs affect consumer prices?

• They decrease prices

• They have no effect

• They increase prices

• They stabilize prices

What is one reason President Trump supports tariffs?

• To reduce the trade deficit

• To encourage imports

• To lower consumer prices

• To increase exports

What happens if a country raises its tariffs?

• Other countries may lower their tariffs

• Other countries may raise their tariffs

• It has no effect on international trade

• It increases domestic production