IB Econ Tariffs

Organised Post Index

What are Tariffs?

Rather than repeat the content of the course book, start here:

• Tariffs Explained: Why Countries Throw Shade at Foreign Products

Discover how tariffs actually work, who wins, who loses, and how to calculate their effects. Essential knowledge for IB Economics students!

Tariffs | Trade protection | Stakeholder effects | Welfare loss | Consumer surplus | Producer surplus | Diagrams Tariffs

Real-World Tariff Examples

Trump's Steel and Aluminium Tariffs (2018): President Trump imposed 25% tariffs on steel imports and 10% on aluminium. American steel producers celebrated while car manufacturers (who use steel) complained about higher costs. The EU retaliated with tariffs on American products like bourbon whiskey and motorcycles.

Brexit Tariff Uncertainty: After Brexit, many UK businesses faced potential tariffs when trading with the EU. This uncertainty led some companies to relocate operations to EU countries to avoid these barriers.

China-Australia Wine Dispute (2020-21): China imposed tariffs up to 212% on Australian wine after political tensions. Australian wine exports to China collapsed by 97%, devastating Australian producers who had relied on the Chinese market.

Trump's 2025 tariffs: In early 2025, President Donald Trump reignited trade tensions by announcing significant tariffs:​

• 25% tariffs on all imports from Canada and Mexico, citing concerns over illegal immigration and drug trafficking.

• 10% tariffs on imports from China, aiming to pressure Beijing on various issues.

Compare Tariffs to Other Protectionist Tools

Not all trade barriers are created equal. If you get a 10-mark or 15-mark question asking you to compare, start here:

Quotas

• Quotas: When Countries Say "Enough is Enough!" to Imports

Discover how import quotas affect prices, producers, and your shopping options! Perfect guide for IB Economics students with real examples and exam tips.

Import quotas | Trade restrictions | Protectionism | Welfare effects of quotas | Quota examples | Quota calculations | International trade barriers | Quotas Diagrams.

Quotas Real World Examples:

With recent global supply chain disruptions and growing protectionist tendencies, quotas are making a comeback:

• The EU imposing steel import quotas to protect European manufacturers

• Japan maintaining strict rice import quotas to protect traditional farmers

• The UK establishing new fishing quotas in the North Sea

• Saudi Arabia setting quotas on foreign workers to boost domestic employment

Government Subsidies

• Subsidies: When Governments Pay to Play (and Keep Others Away)

Discover how government subsidies and administrative barriers affect global trade! Perfect guide for IB Economics students with real examples and exam tips.

Government subsidies | Production subsidies | Export subsidies | Administrative barriers | Trade restrictions | Protectionism | Welfare effects of subsidies | Embargoes | Non-tariff barriers | Subsidies Diagrams

Trade Protection

• Trade Protection: The Good, the Bad, and the Economically Ugly

Why do countries protect their industries? Discover the real arguments for and against trade protection, with humour, examples, and memes included for IB Economics students.

Trade protection IB Economics | Advantages of trade protection | Arguments for and against trade protection | Tariff examples 2025 | Free trade vs trade protection.

Final Tip: Bookmark This Page

Return here any time during revision or writing your Paper 1s. This is your central hub for understanding tariffs in IB Economics - without getting lost in theory again.

For access to all key diagrams, model answers, and exam strategies,

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