It is argued that a tariff may help promote employment in a single industry but is not likely to help employment in general. Discuss.

One of the primary reasons for imposing tariffs is to protect young industries from foreign competition. This may be advantageous in the short term as it creates employment within those industries. However, other industries may suffer due to retaliatory tariffs. Tariffs are also imposed as a measure of national security. The biggest problem with tariffs is that they lead to retaliation. When countries retaliate, the economic consequences are immense. One of the significant consequences of tariffs is it causes unemployment.

Due to the ongoing trade war between the US and China, firms have taken drastic measures to insulate themselves from the war's cost. For example, Harley Davidson has announced that some of its production activities will be conducted abroad due to the EU's retaliatory tariffs. This will ultimately result in massive layoffs. A decrease in consumer spending causes people to lose jobs in all sectors of the economy. The ripple effect of a trade war, for example, is massive. The cost of producing goods and services may go up in other industries leading to reduced demand for workers. Firms lay off workers to reduce the cost of production.