17
Jan

The Importance Of Imposing Tariffs On Imports

Definition of import tariffs

They are taxes imposed by the government of a particular country or governing authority to goods or services that enter the country. They are usually specific to a particular industry or product.

The aim of imposing import tariffs is to adjust the balance of trade between the trading partners internationally and the country that has imposed the tariffs.

When a government imposes them on a particular product or service the cost of importing that particular jmkb3e5dt623ye7u282product or service increases; the additional costs brought about by the import tariffs discourages the importers and by doing so affects the balance of trade.

Reasons for imposing tariffs on imports is sensible because they are used by an existing government to protect the existing budding industries among other things as explained below.

Protecting budding industries

One of the major reasons that most governments consider when imposing import tariffs on products and goods is the upcoming industry. They are usually imposed so as to protect the nascent industries from cut-throat international market completion. This is usually done to give the domestic industry sufficient time to develop and stabilize before being exposed to international platforms.

National security

Every country has a particular section of their economy that gives significant products or services that touch on matters that are related to national security. In such a situation the government may impose import tariffs on that particular product or service so as to secure it from international competition in the event of territorial conflicts.

Securing Domestic Employment

They are sometimes imposed on industrial products that are struggling to compete on international platforms. This is usually done by implementing government policies that will protect the local industries from collapsing so as to secure the employment opportunities that come with the affected companies. These tariffs are used to encourage consumption of local goods and services as opposed to the imported ones with an aim of supporting job growth

Hostile Trade Practices

Sometimeskmb5f53etd6y27du82i92 international competitors deploy aggressive and hostile marketing strategies so as to explore new market niches or gain huge market shares. Such tactics include flooding a particular market with given products or services. In such situations, the government imposes import tariffs to protect the local market from what they consider unfair trade tactics.

Environmental standards

To protect the environment, the government can impose import tariffs on goods that they feel do not adhere to certain environmental set standards. This is usually done so as to discourage the importation of a particular product with a view to protecting the environment from its adverse effects.

Reasons for imposing tariffs on imports is sensible and justified because they are meant for the common good of the people of that particular country and the safeguarding the interest of the economy.