It definitely has knock on impacts.

Most directly, when foreign products become more expensive, people may choose a local product that was previously seen as too expensive. So it generally has a negative effect on the foreign economy and boosts local production.

Unfortunately, it also drives the foreign companies to become more efficient so they can get their prices back down, while giving the local producers a crutch to justify higher prices and stagnate.

And there are other side effects, and all of the side-effects have side effects of their own. Economies are complicated.