Protective tariffs are designed to shield domestic production from foreign competition by raising the price of the imported commodity. Revenue tariffs are designed to obtain revenue rather than to restrict imports.
What is the purpose of a tariff?
Tariffs have three primary functions: to serve as a source of revenue, to protect domestic industries, and to remedy trade distortions (punitive function). The revenue function comes from the fact that the income from tariffs provides governments with a source of funding.
What is the purpose of a protective tariff quizlet?
What is a protective tariff? The purpose of a protective tariff is to protect a country’s industries from foreign competition. A tariff is a tax. The U.S. put this on other country’s products to make them more expensive.
What is the meaning of the word protective tariff?
: a tariff intended primarily to protect domestic producers rather than to yield revenue.
Do tariffs help the economy?
Scaling back tariffs would likely benefit the US economy and create jobs. Even a moderate rollback in tariffs could increase economic growth and stimulate employment growth. … US household income would be $460 higher per household as result of increased employment and incomes as well as lower prices.
What is an example of a protective tariff?
A protective tariff is a choice by a national government to create a financial barrier or tax on the imports of one or more nation’s imports into the country. … The import of oranges is a classic example of such a protective tariff. Not every place is able to grow citrus.
What are the two main purposes of a protective tariff?
Tariffs are taxes placed on goods imported from foreign countries. Tariffs serve two main purposes. First, these taxes allow a nation to raise money. Second, tariffs protect a nation’s goods from cheaper priced foreign items.
What was the first protective tariff?
The Tariff of 1816, also known as the Dallas Tariff, is notable as the first tariff passed by Congress with an explicit function of protecting U.S. manufactured items from overseas competition. Prior to the War of 1812, tariffs had primarily served to raise revenues to operate the national government.
What is another name for protective tariffs?
Hyponym for Protective tariff: