Why are tariffs imposed by governments?

Tariffs are primarily imposed by governments to protect domestic industries from foreign competition. When a country imposes a tariff, it raises the cost of imported goods, making domestic products more appealing to consumers due to their relatively lower price. This protectionist measure serves to shield local businesses from international competition, allowing them to thrive and maintain market share.

By making foreign goods more expensive, tariffs create a price advantage for domestic products, which can lead to increased sales and job preservation in local industries. This is particularly important for emerging or struggling sectors that may not be able to compete effectively against established foreign producers without such support.

The other options do not accurately reflect the primary purpose of tariffs. Decreasing the cost of foreign goods, encouraging international trade, and simplifying the import-export process are not objectives associated with the imposition of tariffs; rather, they contradict the essence of what tariffs are designed to do.