Question

The most basic effect that an import tariff has is to raise domestic prices in the country imposing the tariff

Answer 1

true

Step-by-step explanation:

When the world price is lower than the domestic price of a good, domestic producers will need to lower prices in order to compete with imports. Tariffs artificially increase the price of imports, which means that domestic producers can charge an artificially high price for their goods. Tariffs always hurt consumers and industries that need to import materials or components.