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As talk of tariffs, global trading, and domestic industry dominate the headlines, we asked babson college associate professor of economics joshua stillwagon to help break. It is usually a percentage of the product’s cost, collected by customs officials at entry points. By making foreign goods more expensive, tariffs help local producers compete more effectively.
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Countries use tariffs for multiple reasons: Tariffs are taxes imposed by governments on imported goods to protect domestic industries, raise revenue, or exert political leverage over another country. Governments may opt to impose tariffs for a multitude of reasons, including to protect nascent industries, fortify national defense programs, support domestic employment.
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A tariff is a tax imposed by a country on goods imported from other nations.
Countries impose tariffs for various reasons, including protecting local jobs, supporting emerging industries, or retaliating against unfair trade practices from other nations. When an american business imports goods, u.s. Tariffs are taxes on imports of goods, usually for purposes of protecting particular domestic industries from import competition.
