The scoop on Tariffs | Selling

lotzofuniquegoodies · 2025-01-31T16:41:28.275000Z

For anyone interested here is a nice and neat explanation of tariffs. Tariffs: What are they, who pays for them and who do they benefit?In response to heightened interest in tariffs resulting from recent political proposals and policies, a USC Dornsife economics professor and expert on trade explains the ins and outs of these international taxes. ByDarrin S. Joy October 1, 2024ShareCopy LinkFacebookXLinkedInBlueskyEmailThe United States government first implemented tariffs shortly after the Constitution’s ratification to help fund the young nation’s government. Over time, these taxes on internationally traded goods largely fell out of favor, only to resurface between World Wars I and II before fading again. Recently, tariffs have once again emerged as a favored policy tool, sparking debate over their impact and effectiveness. What is a tariff and what is its function?A tariff is a tax placed on goods when they cross national borders. The most common type is an import tariff, which taxes goods brought into a country. There are also export tariffs, which are taxes on goods a country exports, though these are rare. The United States does not allow export tariffs; the Constitution (Article I, Section 9) forbids them.Tariffs are typically imposed for protection or revenue purposes. A protective tariff increases the price of imported goods relative to domestic goods, encouraging consumers to buy from local producers, who are thus “protected” from foreign competition. A revenue tariff, on the other hand, is mainly used to generate money for the government. Who pays a tariff and who benefits from it?In the U.S., it’s the importer — the company or entity bringing the goods into the country — that pays the actual tariff to U.S. Customs and Border Protection, part of the Department of Homeland Security. This payment occurs when the goods enter the country, though the true financial impact extends beyond the initial payer.The impact of a tariff depends on whether the country imposing it is “large” or “small” in terms of its ability to influence world prices. See link for the rest of the story:https://dornsife.usc.edu/news/stories/tariffs-explained-by-economics-professor-trade-expert/#:~:text=In%20the%20U.S.%2C%20it's%20the,the%20Department%20of%20Homeland%20Security.

Home
News & Updates
- Announcements
Discussion Boards
- - About the Community
  - Community Feedback
eBay Help

Discussions