0 Morty Asked: August 13, 2019In: Economics What exactly is an inverted tariff and is it “bad” for the economy? 0 Tried to understand what it is by reading articles, still do not. Sad. In: Economics Share Facebook 1 Answer Voted MJMurcott Added an answer on August 13, 2019 at 4:46 pm The inverted tariff is where the costs of tariffs on a completed item is lower than the cost of the tariff of the components if they were imported as individual items. So if there was a tariff of 20% on washing machines, but a 30% tariff on steel components of an unassembled machine. This would mean that a washing machine would be far cheaper than the parts for a washing machine so an importer would only import complete washing machines and not import the various parts and then have them assembled the country. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Attachment Select file Browse Featured image Select file Browse What is the capital of UK? ( London ) Save my name, email, and website in this browser for the next time I comment.