Evaluate the following statements: Is the statement true or false? And why? Protective tariffs reduce both the imports and the exports of the nation that levies tariffs. The extensive application of protective tariffs destroys the ability of the international market system to allocate resources efficiently. Unemployment in some industries can often be reduced through tariff protection, but by the same token inefficiency typically increases. Foreign firms that "dump" their products onto the American market are in effect providing bargains to the country‘s citizens.