What is the primary purpose of tariffs?

The primary purpose of tariffs is to impose taxes on imports, which raises the prices of those goods in the domestic market. By doing this, tariffs are designed to protect local industries from foreign competition. When imported goods become more expensive due to tariffs, consumers are more likely to buy domestically produced products instead. This can help stimulate local production, preserve jobs in domestic industries, and reduce trade deficits.

Additionally, tariffs can generate revenue for the government, which can be used for various public services. They can also serve as a tool for political leverage in international trade negotiations. The choice that outlines this function clearly captures the essence of what tariffs are aimed to achieve in economic policy.