Democracy Wiki

Import tariffs are taxes or regulations placed on goods that are produced in other countries. In addition to increasing government revenue, tariffs can incentivize citizens to buy products made in their own country in order to avoid paying higher prices for imports. These regulations are often upsetting to domestic capitalists, who consider tariffs a distortion of the free market, as well as those abroad, adding strain to both international trade and foreign relations. In contrast, these measures are frequently met with approval by patriots, since they provide protection to domestic producers and reduce unemployment.


Cheap imports can be damaging to the economy because local companies cannot match the lower salaries paid by foreign competitors. Import tariffs help to protect local manufacturers from 'unfair' competition. This does go against real free-market economics though, and can be seen as being unfair to foreign countries, possibly sparking retaliation.


Implementation Time: 5 Quarters

Introduction Cost (Political Capital): 13

Potential Costs: None

Potential Income: $1.61 Bn – $3.59 Bn


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