While we wait for today's purchasing managers' index and Naamsa's vehicle sales figures, I want to talk about some interesting research on how trade restrictions affect consumer prices. A tariff is a tax levied on imported products to increase the price. It protects domestic producers from unfair competition, but consumers pay more for the imported product. Tariffs on chicken meat have recently been reduced and those on frozen potato chips were recently raised and made the news.
* The Economics Minute is supported by the NWU Business School.
