Which of the following is NOT listed as an argument for tariffs?

• A. They can protect newly emerging industries
• B. They can protect industries important for national security (food production)
• C. They can respond to unfair trade practices by other countries
• D. They can promote free trade by encouraging efficiency

Answer: (D)

Tariffs are trade barriers used to shield domestic markets from foreign competition and to address strategic concerns. The infant industry argument says new domestic industries need protection to reach a scale where they can compete internationally. The national security rationale emphasizes safeguarding essential sectors, like food production, to prevent vulnerabilities in times of crisis. The response to unfair trade practices supports using tariffs to counter subsidies or dumping by trading partners and maintain fair competition. In contrast, the idea that tariffs promote free trade by encouraging efficiency doesn’t fit as a tariff justification. Tariffs raise the cost of imports, can lead to retaliation, and often shield firms from competitive pressure, which typically reduces efficiency rather than enhances it.