Key Diagrams - Import Tariffs and Economic Welfare

This video walks through the impact of an import tariff on consumer and producer surplus, tax revenues and the deadweight loss of welfare.

Develop your import tariff diagram to show the economic welfare effects. This will get you higher marks for analysis and also help to support stronger evaluation especially when you are discussing who wins and who loses from trade protectionism.

Remember that many countries also use non-tariff barriers such as import quotas and domestic subsidies when introducing restrictions on international trade. These two can also be used as analysis diagrams if requested by a question.