Effect of the Tariff on Tires The tariff on tires increases the price of tires from China from PW to PW + t. The supply from the United States is shown by S, and the supply from other exporting countries by X*. As a result of the tariff, these two sources of supply increase from S1 + to S2 + ; China supplies the rest of the market up to demand D1. Because the other exporting countries do not face the tariff, they collect area e from the higher prices charged in the U.S. market. Therefore, the deadweight loss from the tariff is (b + d + e).