It seems high tariff is not useful

[markyears]

I am very new to Victoria 2. I have a question of tariff. It seems that it is pointless to set high tariff except for making more money.

I'm not sure whether my understanding of the system is correct. But as I understand, Tariff cannot protect my industry. Since anyway, pops are always first seeking for goods in the local market and the then from the world market. According to this, even we set 0 tariff, they are still buying goods from local in a higher priority. Am I right? Thanks!

 

[adriankowaty]

From my perspective tariffs actually do harm your industry by blocking you access to foreing resouces needed to feed your industry, which aren't available at home, like sulphur, oil, rubber and such.

 

[markyears]

From my perspective tariffs actually do harm your industry by blocking you access to foreing resouces needed to feed your industry, which aren't available at home, like sulphur, oil, rubber and such.

Exactly! So it only hurts the industry when is high, right? But I didn't see the point of set it low (except for increasing government income of course).

 

[adriankowaty]

Exactly! So it only hurts the industry when is high, right? But I didn't see the point of set it low (except for increasing government income of course).

It's useful when you have financial trouble or to keep positive balance. Otherwise, it wisier to relly on higher taxes, keep tariffs at about 10-25% and keep subsidizing people by wealthfare and industry by subsidies.
It'll later turn out that you need actually waay more workers over time, so importing goods is basically a must if you don't own many resouces.

 

[markyears]

It's useful when you have financial trouble or to keep positive balance. Otherwise, it wisier to relly on higher taxes, keep tariffs at about 10-25% and keep subsidizing people by wealthfare and industry by subsidies.
It'll later turn out that you need actually waay more workers over time, so importing goods is basically a must if you don't own many resouces.

Thanks! Or... maybe another usage of high tariff is to make artisans bankrupt since they don't have money to buy resources. But my factories don't suffer since I can subsidize.

 

[grimkm]

I sometimes start off with high tariffs and build the industrial base only of things I produce myself. But in time, they disappear.

 

[Kovax]

I generally start out with moderate tariffs, to force the pops to buy domestic goods over foreign products and to collect some starting capital to grow an industrial base. Then I gradually reduce them to trivial levels (or zero), as my own industries start becoming stable. At that point, I've got sufficient tax revenues that I don't need the tariff money, and am more concerned with keeping my factories' inputs affordable.

 

[TestosteroneLol]

I generally start out with moderate tariffs, to force the pops to buy domestic goods over foreign products and to collect some starting capital to grow an industrial base. Then I gradually reduce them to trivial levels (or zero), as my own industries start becoming stable. At that point, I've got sufficient tax revenues that I don't need the tariff money, and am more concerned with keeping my factories' inputs affordable.

Pops always buy from the domestic market first anyway, so tariffs only serve to make money.

 

[SacremPyrobolum]

Shouldn't tariff be helpful if you are a large empire with access to all the resources you need? Wouldn't it encourage people to buy local?

 

[TestosteroneLol]

Shouldn't tariff be helpful if you are a large empire with access to all the resources you need? Wouldn't it encourage people to buy local?

Pops always buy from the domestic market first anyway, so tariffs only serve to make money.

 

[RELee]

Tariffs can be beneficial in the early game if you're struggling to keep the economy in the green. If you're struggling in the late game then catastrophe is upon you.