In a partial equilibrium framework, a tariff, essentially a tax on imported goods, sets off a cascade of effects within a specific market. The most immediate is the price effect: the tariff raises the domestic price of the imported good, as importers pass on the added cost to consumers. This increase in price usually means the good becomes less competitive against domestically produced alternatives.

This leads directly to the protective effect. By making imports more expensive, the tariff shields domestic industries from foreign competition. Local producers can now sell their goods at a higher price or expand their output, enjoying a larger share of the market than they would in the absence of the tariff. This is the primary rationale often given for implementing protectionist measures.

However, higher prices also trigger a consumption effect. Consumers face a higher cost for the good, leading them to reduce their overall consumption of it. They might switch to domestic substitutes, consume less of the good altogether, or simply bear the higher cost, thus diminishing their real income. This represents a welfare loss for consumers.

From the government's perspective, there's a revenue effect. The tariff generates tax revenue for the government on each unit of the imported good that still enters the country. This revenue can be significant, especially for frequently imported items, and can be used to fund public services or reduce other taxes.

Finally, the distributive effect refers to how the tariff redistributes income within the economy. Domestic producers, benefiting from higher prices and reduced competition, see their incomes rise. The government gains revenue. Conversely, consumers bear the burden of higher prices, experiencing a reduction in their real income. Foreign exporters, facing reduced demand and potentially lower net prices (after the tariff), also lose out. Thus, a tariff effectively shifts welfare from consumers and foreign producers to domestic producers and the government.