Tariffs on Imports

“Tariff” comes originally from the Arabic word ta’rifah meaning “to make known.” In a more contemporary setting ‘tariff’ is defined as “the schedule or system of duties so imposed.”("Dictionary.com," 2015, p. 1) This is often taken to be defined as a “tax that a national government places on an imported or exported good or service to encourage or discourage trade.”(Fontinelle, 2012, p. 1)

3. A tariff is the tax of imports and exports to different countries, some countries may have trade agreements to reduce or completely get rid of

From an academic standpoint, economists overall believe that free trade would benefit the economy more than instituting tariffs and non-tariff trade barriers. However, the reality is quite different. Politically, tariffs help to strike a balance between social welfare and the politicians’ goals. One theory is that campaign contributions are needed for re-election; and to achieve these funds, politicians will weigh this need against welfare-reducing protection for industry lobbyists (Magee, 2011). The models would suggest that the tariffs should actually be much higher than they are due to the low efficiency cost of tariffs compared to the substantial gains provided for the producers (Magee, 2011). However, developed countries actually have very low tariffs. There are six possible explanations for why developed countries have such low tariffs when the political theories behind why we have tariffs at all would suggest they should be higher.

As a result, of rising opportunity costs, domestic production may stop short of complete specialization. However, if a large group of people and nations are benefiting from specialization and in international exchange, the government has the power to restrict the free flow of imports or encourage exports. Government can interfere with free trade by protective tariffs, import quotas, nontariff barriers, and export subsidies. Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry. Import tariffs limits on the quantities or total value of specific items that may be imported. Nontariff barriers is a form of restrictive trade where barriers to trade are set up and take a form other than a tariff. While export subsidies is a government policy to encourage export of goods and discourage sale of goods on the domestic market through direct payments, low-cost loans, tax relief for exporters, or government-financed international advertising. In executing barriers against imports, the nations whose exports suffer may retaliate with trade barriers of their own, creating a trade

from imports, so sometimes a tariff is applied. A tariff is a tax that is charged on imported goods.

Tariffs are placed on imports and foreign products. They were originally made to provide revenue for the federal government, go before income or property taxes.2 However, tariffs now have a different uses and are looked at differently. Tariffs increase the price of a product, lowering its demand and sets aside domestic producers from foreign competition.2 Because of this, countries places higher tariffs on goods that will be considered import sensitive.2 The U.S. also imposes taxes on the income that is earned instead of placing taxes based on consumption,which is called a Value Added Tax.1 This is a motivator to move companies

Tariffs are taxes that are on imports, and exports. They impact the economy because sometimes, the tariff can be increased for them to deter a certain good from entering the country or lower profits of businesses from other countries.

In the United States tariffs were first implemented in 1789, with the Tariff Act of 1789. The Tariff Act was passed in the House then signed by President George Washington on July 4, 1789. Tariffs were part of federal tax revenue for the government before any type of federal income taxes came into existence. So why do leaders keep on imposing tariffs if it seems like they don’t have a positive impact on the economy and only a bad deal for the economy overall? A tariff can help by protecting domestic employment because competition that is highly increased from goods being imported can threaten domestic industries. For the reason of doubt many companies will lay off or fire their employees. They would even move production to a different location for the means of cutting costs in order to save themselves. Another reason why tariffs are implemented is for protecting the consumers, the people who buy the goods. Governments put tariffs into affect because they feel that products can hurt the population. For example, it can be on a type of meat, thinking that the meat is carrying some sort of disease ultimately not having much trust on the foreign country

A tariff is a tax placed on particular imported or exported goods and services. There several types of tariffs; specific tariffs, ad valorem tariffs, licenses, import quotas, voluntary export restraints and local content requirements. Governments use these tariffs for protecting domestic employment, new businesses against competition,

The key important role of government intervene in international trade is interest to protect the domestic producers in their country. Political arguments concerned with protecting the interests of one group, which are producers often at the expense of another within a nation, which are consumers. First, government should protect jobs and

Managing the how goods and services enter or leave this country (import/export) is an important process that allows for us to control the economic status of our nation. Sometimes imposing tariffs on the goods imported balances our labor cost, resources and government supported industry. A tariff by definition is a tax or duty to be paid on a particular class of imports or exports.

Tariffs imposed on foreign goods and services may harm domestic manufacturers in the long run because it often benefit one sector at the expense of the other (Buchanan, R: 2013).

However, tariffs can be looked at in the economic sense of reducing overall welfare due to the tariff being introduced as it pushes the prices upwards. This tends to affect the economic welfare of consumers more than producers. Therefore, it could be argued that for the consumers in Britain this policy negatively affected them whilst

There are many different policy tools that can be used to apply limitations on international trade. Countries engage in such polies for a wide array of different reasons or motivations. Generally the most common justification for instituting such a policy is to protect domestic producers in any business activity that is deemed appropriate to protect national interests. For example, if the domestic producer of military weapons is not competitive with other firms on the international market then a country might implement some form of trade restriction to protect the domestic industry from foreign competition. If no trade restriction is placed on the good, such as goods produced by military manufactures, then domestic firms might not be competitive in the international market and be dismantled.

Governments intervene in international trade through use of tariffs that are levied on both imports and exports. The government may either impose fixed tariffs that are calculated per unit of the import commodity or the ad valorem tariff that is calculated as a fixed percentage of the monetary value of the imported commodity. The government imposes high import tariffs in order to control the rate of imports by making the imports more expensive in comparison to the domestically produced substitutes. The tariffs increase the prices of goods and services thus reducing the quantity demanded (Misra and Yadav 2009). The use of tariffs is detrimental to international trade since it lowers competition and results in high prices of commodities in the markets. The tariffs discourage imports and domestic producers benefit from the higher prices and reduction in competition. The EU uses variable