Suppose the government currently places tariffs and/or other import re

Suppose the government currently places tariffs and/or other import restrictions on good X. Will imposing a tariff and/or trade restriction on good Y necessarily reduce overall social welfare for the economy?

What will be an ideal response?

ANSWER

No, this follows from the contrapositive of the Theory of the Second Best. If removing one market distortion while leaving others in place may increase or decrease social welfare, the same is true for adding a market restriction while others are in place.