What is the potential economic impact of tariffs?

If you get asked a question like this, you need to acknowledge that there are multiple perspectives, then look at the question from the perspective of these different perspectives. 

For example, you could mention that tariffs on supplies from other countries:

  • Can be great for domestic producers, as less competition
  • Can also be great for the country’s overall economy, as more money will be flowing – and more jobs will likely be created (through domestic producers needing to expand to meet increased demand) – in the domestic economy.

However...

  • Tariffs probably won't be great for the businesses those domestic producers supply, as they’ll have to potentially pay higher prices (if there's less competition, then the domestic producers could have more freedom to charge higher prices).
  • This could be bad for consumers, as the higher prices will likely be passed on down the supply chain. 
  • And tariffs obviously won't be great for foreign suppliers that are banned by the tariffs from supplying to the jurisdiction that introduced the tariffs.

In addition, if there are tariffs on supplying out of a particular country (for example, if one country doesn't want to allow another country to access domestically produced weapons, chips, technology infrastructure etc.), this could negatively impact that country's businesses, as it would mean they have a smaller pool of customers to sell to.