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why can't we just raise tariff on all imported goods? watch

    • Thread Starter

    Just impose a 200% tax on all imported items to promote 'buy british first' policy. Soon we will be out of this recession.

    Donald Trump suggested this before. Not sure why no one listens to him.
    • PS Reviewer

    PS Reviewer
    Because there are some things that can't be made in the UK, and other things that are made more cheaply abroad. So by raising prices (which is what a tariff will do, as companies will pass that on to the consumer) you're then increasing inflation and the cost of living. Also, if people are encouraged to buy British there will be a sharp increase in demand which firms will struggle to meet - they can't just double or triple their output. This may then lead to rationing, or prices having to rise to cope with the demand.

    It also means other countries will do the same to our exports in a tit-for-tat way, so everything we try to sell abroad suddenly becomes massively more expensive for the buyers, they refuse to buy them and our finances take a hit.

    Other countries will increase tariffs on British goods and British companies would lose business.

    Protectionism is the old way of doing things. Modern economies are designed to function with as much free trade possible. Heck, why do you think more countries sign up to free trade deals like the original idea of the EU? Trade ways benefit very few people.
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