Answer:
The foreign nation is using a tariff
Explanation:
A Tariff is a tax levied on imported goods. In this example, the tariff goes from 12% to 18% of the value of the good. The main reasoning behind tariffs is to lower the demand for imported goods, and increase the demand for local goods. However, the ast majority of economists agree that tariffs reduce the supply of goods, and hence, result in higher prices for consumers.
