Tariffs…..Tariffs…..We All Fall Down – In Saner Thought
A tariff is a TAX……how’s that for simple?
A tariff is a tax on goods coming into or leaving a country. That tax might be an ad valorem tax, which is a fixed percentage of the product’s price from time to time, or a specific tax that stays the same no matter what happens to the product’s price. Either way, the aim of import tariffs is to stop cheap goods from coming into the country from overseas and stealing market share of domestic producers. In this sense, tariffs are a form of protectionism, imposed to save industries that are especially vulnerable to competition from overseas.
I have tried to make it simple for people to understand tariffs and their results……