tariff is not pro-producer + anti consumer?

Question

debate on this topic.

Answer 1

Tariffs are good if you're a protected industry; and bad if you're everyone else who has to pay higher prices.

Tariffs essentially fund inefficiency in protected industries.

Answer 2

Tariffs are definitely not pro consumer because they divert the benefits of cheaper foreign products to the government instead of the end consumer. They also allow domestic producers to keep their prices in their home countries higher, which also negatively impacts consumers.
The issue of whether tariffs benefit producers is a little more tricky. In the short run, tariffs shelter domestic producers from more efficient foreign competition. This allows them to grow without the threat of being driven out of business. In the long run, however, tariffs on existing producers probably doesn't help them. Without the pressure of competition, companies do not push for cost reductions as aggressively as they would otherwise, which makes them less competitive in foreign markets. If there were no tariffs, domestic companies would have to have a cost structure in place that would allow them to compete in all markets. Eventually, if they are successful, this should allow them access to greater revenue and profitability overall.
The other point to make is that if there are protected industries, resources that might be more productive in other areas will continue to be used in the protected industries, creating a drag on the overall economy.

Answer 3

William's answer is very good, but if you are looking for a complete debate, then it must be added that tariffs can be extremely helpful to producers when they are done right. They were an essential policy tool behind the emergence of the Asian Tiger economies, for example. In fact, my impression is that NO industrial economy has EVER succeeded without appropriate tariffs to protect emerging industries. Nonetheless, everything William says about how tariffs can be bad for producers is correct.

Answer 4

William nailed it, nothing to debate.