Tariff Reform Program

b. Look at the Tariff Chart on page A57 of the Appendix. At their peak in 1828, tariff duties on imported goods amounted to 60 percent of their value. In 1996, that tariff rate amounted to only about 5 percent. The authors say

Tariffs exist in many different forms, and have various uses dependent on the economic situation and outlook. They can be specific such as a set tax per item, or ad valoreum, with a percentage tax per unit. (McEachern, 2015, p. 282) This paper will discuss function of each and the positive and negative effects of the use of these various tools.

control over trade between states and countries. While the purpose of this tariff is completely

Tariffs are taxes enforced on the importing of goods and services (McEachern, W. A., 2015). If there is a tax increase on imported goods or services, then producers could increase the price of the good to make up the difference. The Tariff Act of 1789 was signed by President George Washington. This was the first significant Act passed in the United States. The purpose of the Act was meant to protect trade and raise the federal governments revenue and to regulate Commerce with foreign nations (Malloy, M.P., 2004)

When a tariff is introduced, the consumer surplus at the world price (A+H+I+J+G+C+D+E+F) is decreased to the tariff price (A+H+I+J).

Understanding that heavy economic repression was unsustainable and leading to the worsening economic conditions, the liberalization reform plan aimed to decentralize markets and relax some restrictions set by the previous government. The first policy deregulated the commodity market by reversing price freezes, privatizing previously nationalized

1) The scope of any economy is that of creating a balance between its exports and imports, or exporting more than importing, in order to generate national gains and revenues. Within the United States however, it has often happened that the totality of the imports exceeded the totality of the exports. The result of

It was designed to eliminate trade barriers between the United States, Canada, and parts of Asia.

tariff rates up to three or four years, if increases in imports of Mexican goods cause or threaten to cause

The Transatlantic Trade and Investment Partnership (TTIP) was introduce as vehicle spark growth between the United State and the European Union. The US and EU represent the most developed, modern and committed to the highest consumer protection in the world. It is the T-TIP goal to capitalize on the relationship by providing economic growth and more jobs to US and EU to 13 million jobs already supported by transatlantic trade and investment. It is the T-TIP goal and desire to cut the edge and tariff agreements to allow for greater compatibility and transparency, in trade and investment regulations, while maintaining high level of health, safety and environmental protection.

It’s not difficult to visualize the possible dilemmas or disadvantages that may arise from tariffs, such as equality, trust, and values. Therefore, global transfer pricing and business can suffer from ethical issues. Laws and regulations should be taken seriously and professionally, while, excluding favoritism. According to Habibullah,

In this paper I will summarize the arguments for and against trade protection for United States industries. Among the measures that can be used to restrict foreign trade are tariffs and trade quotas. Industries can also get nontariff barriers, miscellaneous legislation which give domestic products an advantage. In general, experts agree that restricted foreign trade benefits workers and domestic businesses, while under free trade consumers have a greater quantity and quality of choices available to them. [1] I will also look at arguments for and against NAFTA, an important trade agreement between the countries of North America.

Throughout history, the United States’ trading policies have shifted from early protectionism intended to generate revenue and support domestic industry growth to a high degree of free trade within the international trade market (Carbaugh, 2015). In between, policy changes designed to increase and decrease tariffs were enacted due to pressure from politicians, economists, industries, citizens and other countries. Yet, emphasized in the ensuing paragraphs, America’s continuous efforts to maintain a sufficient amount of trade tariffs has continuously led to fluctuations in the domestic economy. Along with the country’s practice of protectionism, the policies that influenced the major changes in tariff rates include the

Their mission was to reduce trade barriers on manufactured goods and to build-up the principle of most-favored nation (MFN) status. This would impose a sense of fairness

There are quite a few forms of tariffs that the government may apply based on the condition of the country’s economic welfare. The pros and cons of these forms of tariffs will be reviewed. Discussion on how these tariffs positively or negatively affects the economic stance of the country will be displayed. Tariffs such as the ad valorem, the taxing a percentage of the value of an item and the specific tariff or tax which is a set amount based on weight or sum of items. (McEachern, 2015)