Essay on Impact Of Tariffs On The United States

1752 Words Oct 17th, 2015 8 Pages
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 on Tariffs and Trade have been established to monitor the price levels and equalities of the tariffs. History throughout the years has shown us that tariffs can have their pros and tariffs can have their cons. A tariff is any kind of tax on imports and exports that can be specific or ad valorem (McEachern, 2015, p. 282). Both types of tariffs have an effect on the economy because they will establish extra money into the government. The tariffs can cause a positive impact on the government because the surplus income can be used to improve government research agencies, improve technology, or even allow the government to start chipping away at the national deficit. When the government’s income rises they will be able to…

Related Documents