The protective effect of tariffs results in a loss to the national economy resulting from the waste of resources used to produce additional items at increasing unit cost. The tariff determines an increase in national production which uses resources less suitable for the production of the good and which increases production costs. The protective effect of a tariff occurs because less efficient domestic production is replaced with more efficient foreign production. Any previous consumer surplus is lost because tariffs caused it to go to the government as revenue, be passed on to domestic suppliers as revenue, and lost from the economy due to inefficiency of domestic production.