Which type of goods, domestic or imported, becomes more expensive as a result of tariffs?

Tariffs are tax on imports and exports. Tariffs are levied by governments. They are often collected on certain items only. They are often imposed on foreign imports so the state can protect domestic producers. However, tariffs do stifle competition by making imported goods more expensive, so adds burden to consumers. It is often viewed as having a negative effect on the importing country.

Types of imported goods become expensive because of the postage rates and customs taxes of the goods.

In theory, withholding imports of consumer goods will certainly create an inflationary effect on domestic consumer goods. When consumer goods become more expensive, the people's purchasing power is at stake.

In addition to shipping costs, the item is also subject to additional fees in the form of import duties. The amount of import duty really depends on the type of goods. If the sending country is involved in trade cooperation with a country, the price can be different again.

There are two functions of customs duties. First, to record if goods that enter are safe, licensed, can be accounted for, and not smuggled goods that are harmful to consumers. The duty of customs officials who oversee the legality of goods at the port of cargo.

Secondly, of course, in order to protect domestic industries from competition for similar imported goods. If the price is the same, foreign brands will definitely be chosen because they have prestige. Hence, the price of imported goods is heavily bound.

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imported goods

Customs Duties

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Class: Middle School

Subject: History

Keyword: goods, imported, customs duties

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