Running head: TARIFFS: PROS AND CONS
Tariffs: Pros and Cons
Mariah E. Davis
Columbia Southern University
July 26, 2015
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TARIFFS: PROS AND CONS
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Introduction
Tariffs are defined as custom levies that are imposed on shipped goods. The levy is
traditionally calculated as a percentage of the collective cost of the shipment, inclusive of
transportation and guarantees. This factor increases the price of the shipment and provides a
benefit to local products in that specific market; these are almost never imposed on export
products. On average, tariffs hover at 5 percent; however, countries charge varying rates of
tariffs depending on the product the tariff is designed to protect. Customs authorities will also
impose sales duties, local duties and even additional customs levies. These levies are collected
when the shipments clear Customs.
TARIFFS: PROS AND CONS
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American trade policy makers constantly change their positions on whether the US
government will develop or establish tariff structures. In general, when a local sector perceives it
is under threat, the industry will pressure Congress into developing a trade restriction policy to
protect its local market. Again, this will help the industry weather intense foreign competitive
pressure; however, the imposition of the trade barriers will drive prices higher for the consuming
public. Simply put, the imposition or non-imposition of trade restrictions will mandate
compromises be arrived at between the need to shield critical and vulnerable industries and
raising the number of Americans with gainful employment. Moreover, retaliation is likely from
countries that will be negatively impacted by the imposition of these policies; this can degenerate
into a downward tailspin for industry, as what occurred during the period of the Great
Depression.
Throughout its history, the United States has imposed one form of trade restriction in its
trading activities with the global...