What is the primary effect of tariffs on imported goods?

Tariffs are taxes imposed on imported goods, which directly increase the cost of these goods for importers. As a result, businesses may pass on these additional costs to consumers by raising prices. This typically leads to higher prices for consumers who purchase imported products.

Furthermore, tariffs can encourage consumers to seek alternatives, potentially increasing demand for domestic goods as they become relatively less expensive compared to the imported items affected by tariffs. While this process can contribute to a shift in consumer behavior favoring local products, the immediate and primary effect observed is an increase in consumer prices. The economic dynamics surrounding tariffs can also impact international relations, but this aspect is secondary compared to the direct effect on pricing.