Impacts Of Tariffs

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Impacts of Tariffs
James B. Smith
Principles of Macroeconomics
Professor Hovey
17 October 2015

Impacts of Tariffs A common term that you will hear in the news regarding economics is the word tariff; tariffs have all but diminished here in the United States because we have become pro free trade country. Agreements like the North American Free Trade Agreement have been formed to allow free trade among multiple countries. Tariffs can greatly benefit the economy, but can also hurt the economy depending on what the tariff pertains to. Tariffs can affect jobs, the quality of the imported product, and cause nasty trade restriction wars between multiple countries. Organizations like World Trade Organizations and General Agreement
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286). The GATT members were in agreement to reduce tariffs, reduce quotas, and to treat all members equally regarding trade (McEachern, 2015, p. 286). The GATT members worked diligently to help reduce the amount of trade wars, through negotiations. The negotiations throughout the years have reduced the amount of dumping that has taken place. The GATT lasted from 1948 until 1994 and consisted of 23 countries until the World Trade Organization (WTO) took its place (McEachern, 2015, p. 286). The WTO is known to be faster and was less likely to cause a blockade when trying to get the countries to cooperate with each …show more content…
Arguments related to free trade include the National Defense Argument, Infant Industry Argument, Antidumping Argument, Jobs and income Argument, and Declining Industries Argument (McEachern, 2015, pp 286-289). People are scared that the free trade will allow the United States precious wartime metal will be placed into the wrong hand. Other arguments are that the lack of tariffs is causing the American jobs to reduce. People believe that the free trade is enabling foreign businesses to strong arm new upcoming businesses to the point of closing down. Arguments like these are directly targeting the trade restrictions because people think that the organizations like the WTO and GATT are controlling the world’s economy through corporate globalization and the world has no say in the

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