What are the different ways in which tariffs are levied in the United States?
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Tariffs are like taxes, which are calculated on the basis of many different factors. Tariffs are based on the financial aspect of price regulations in the domestic market. The country where from and where to the goods are delivered, the trade contracts which are signed with this country, the specifics of the products, their weight (number) and price, etc. There are several types of tariffs, as well as the ways the cost is calculated. Protecting domestic employment is a tariff levied on the basis of the number of unemployed in the sphere the goods are produced. This type of tariff is usually highly politicized as it involved not only the economic part of the problem but also social. Protecting Consumers tariff is based on the idea of restricting customers from dangerous products.
Infant industries tariff is levied highly as the country wants to protect the industries which are too young to make sure that the market is satisfied with its products. The government should make sure that the industry is going to develop in spite of the import of the same goods. The high tariff is considered as the protectionist strategy in this case. National Security and Retaliation protect the USA from the goods of bad quality. Here are the types of tariffs and trade barriers specific tariffs, ad valorem tariffs, licenses, import quotas, voluntary export, restraints, and local content requirements (Radcliffe). Each of these tariffs is levied under the conditions described above. The tariff cost depends on many factors, and in each case, they are different. The prices are impacted, and the government is to control the import and export tariffs to make sure that the country revenue increases, however, the importers and exporters do not feel too great complications in the financial side (Radcliffe).
What are the various types of nontariff barriers imposed in the United States?
Non-tariff barriers are regulations and delays which help the government keep foreign products far from the domestic markets for the country benefit. The main idea of the non-tariff barriers is to help the government to regulate the process on the domestic and imported goods in the case when the tariffs have already been levied, however, the country needs to reduce or increase the number of imported or exported goods. Quotas, embargo, voluntary export restraint (VER), subsidies to local goods, and local content requirement are the main types of non-tariff barriers (Coughlin and Wood 33).
A quota is a limit on imported goods. The same is about export when the country does not allow domestic companies to export too much of the goods for the country benefit. The embargo is the type of non-tariff barrier when the import from a particular country is restricted absolutely. In other words, it is totally banned. Voluntary export restraint is imposed when c country feels huge trade deficit against another country. Subsidies to local goods Non-tariff barrier is imposed when a country wants to increase the competitive power of the domestic market. The local content requirement is based on the principle of branches when foreign companies feel that assembling is going to be more effective than the import of the goods. The opportunities for the country are based on the employment rate and income in economics (Coughlin and Wood 33).
Coughlin, Cletus C. and Geoffrey E. Wood. “An introduction to non-tariff barriers to trade.” Federal Reserve Bank of St. Louis. 1989. Web.
Radcliffe, Brent. “The basics of tariffs and trade barriers.” Investopedia. 2011. Web.