Answer: If an increase in the general level of tariffs is implemented by members of Congress, we should expect several potential outcomes:
Increased cost of imported goods: Tariffs are essentially taxes imposed on imported goods, so an increase in tariffs would raise the cost of those goods. This increase in cost can affect businesses and consumers who rely on imported products, potentially leading to higher prices for consumers.
Impact on domestic industries: Higher tariffs can provide protection to domestic industries by making imported goods relatively more expensive compared to domestically produced goods. This can potentially boost domestic industries by reducing competition from imports and giving them a competitive advantage.
Trade tensions and retaliation: Increasing tariffs can lead to trade tensions between countries. If one country imposes higher tariffs, other countries may respond with their own retaliatory measures, such as imposing tariffs on the goods they import from the country that initiated the tariff increase. This can escalate trade conflicts and potentially harm international trade relationships.
Potential economic consequences: The overall impact on the economy will depend on various factors, including the extent of the tariff increase and the specific industries affected. In some cases, higher tariffs may protect domestic jobs and industries, but in others, they can lead to higher costs for businesses, reduced trade, and potentially slower economic growth.
Step-by-step explanation: