Tariffs and quotas are both imposed on import and export products by the government of a country.
Tariffs, or customs duties, are taxes on imported products, usually in an ad valorem form, levied as a percentage increase on the price of the imported product.
Impacts
- the government can raise tariff tax revenue
- domestic jobs will be protected
- with a tariff, foreign-produced goods must mark up for the tariff, making domestic-produced ones are attractive
- it hurts domestic consumers
Quotas are the limit to the quantity coming into a country.
Benc Tan 