Importing countries can profit from tariffs on foreign exporters, even in competition.
The article shows that countries can benefit from imposing tariffs on imports to make money from foreign exporters, even in a fair market. The researchers created a new model of international trade that considers different types of companies and the costs of exporting. They found that even without any existing issues, it can be best for a country to have a small tariff. As companies become more similar or exporting costs decrease, the ideal tariff gets closer to zero.