ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Tariffs increase the price of goods and services in domestic markets by applying a tax on imported goods that is paid by the domestic importer. To cover the increased costs, the domestic importer then charges higher prices for the goods and services.

Detailed explanation-2: -These include specific tariffs, ad valorem tariffs, compound tariffs, tariff-rate quotas, and retaliatory tariffs. A specific tariff is a tax imposed directly onto one imported good and does not depend on the value of that imported good.

Detailed explanation-3: -The United States currently has a trade-weighted average import tariff rate of 2.0 percent on industrial goods. One-half of all industrial goods imports enter the United States duty free.

Detailed explanation-4: -Economically, import tariffs are charged to generate revenue for the government and to protect local goods against the dominance of foreign products. However, there are other reasons for imposing taxes. One of them is to restrict foreign products from flooding the local market.

Detailed explanation-5: -Tariffs are the taxes imposed by a government of a nation on the imported products. Tariffs will increase the price of imported items that will discourage suppliers from supplying more products as it increases the cost of exporting, which results in an increased price of such products.