Part 3/12:
Fundamentally, tariffs are a targeted tax on imported goods, often acting as a form of protectionism or economic nationalism. This mechanism serves to elevate the cost of imported goods, making domestic products comparatively cheaper. Thus, it fosters domestic production, leading to job creation and stimulating industrial growth while simultaneously generating revenue for the government. Known as import substitution industrialization, this approach has historical roots in the United States, where tariffs were instituted from as early as 1789, ultimately playing a significant role in the nation's industrial growth throughout the 19th century.