Tariff for a Large Country The tariff shifts up the export supply curve from X* to X* + t. As a result, the Home price increases from P^W to P* + t, and the Foreign price falls from P^W to P*. The deadweight loss at Home is the area of the triangle (b + d), and Home also has a terms-of-trade gain of area e. Foreign loses the area (e + f), so the net loss in world welfare is the triangle (b + d + f).