the net welfare effects of a tariff, figure 8-10. the negative effects consist of the two triangles b and d. the first triangle is a production distortion loss, resulting from the face that the tariff leads domestic producers to produce too much of this good. the second triangle is a domestic consumption distortion loss, resulting from the face that the tariff leads consumers to consume too little of the good. the terms of trade gain measured by the rectangle e, which results from the decline in the foreign export price cause by a tariff.