How do higher tariffs generally affect trade volume?

Higher tariffs generally lead to an increase in the cost of imported goods, which, in turn, makes them less attractive to consumers and businesses compared to domestic products. By imposing tariffs, the government is essentially raising the prices of foreign goods, making them more expensive for consumers. As a result, consumers may choose to purchase fewer imports in favor of locally produced alternatives, thereby decreasing the overall volume of trade.

Additionally, when tariffs are raised, trading partners may respond with retaliatory tariffs, further exacerbating the decline in trade volume. This protective measure can protect certain domestic industries, but it does so at the expense of reducing the overall flow of international trade, resulting in decreased economic efficiency and potentially higher prices for consumers.

Therefore, the correct answer highlights the relationship between higher tariffs and a decrease in trade volume due to increased costs associated with imported goods.