Effect of Tariff on Welfare The tariff increases the price from P^W to P^W + t. As a result, consumer surplus falls by (a + b + c + d). Producer surplus rises by area a, and government revenue increases by the area c. Therefore, the net loss in welfare, the deadweight loss to Home, is (b + d), which is measured by the two triangles b and d in panel (a) or the single (combined) triangle b + d in panel (b).