Which of the following best describes the impact of tariffs?

Tariffs are taxes imposed on imported goods, and their primary impact is to increase the cost of these imports. When tariffs are applied, the price of imported goods rises, which can lead to several economic effects. Higher prices for foreign products can encourage consumers to buy domestically produced goods instead, thus protecting local industries and potentially reducing trade deficits.

This increase in import costs can also lead to reduced quantities of imports as consumers and businesses seek lower-cost alternatives. Therefore, option B accurately captures the fundamental effect of tariffs on the economy, emphasizing how they raise the cost associated with importing goods into a country.

While tariffs can potentially influence other aspects of trade and the economy, such as market growth or government revenue, the direct and immediate outcome of implementing a tariff is the raised cost of imports. This distinction is crucial for understanding the broader implications of trade policies.