According to the U.S. International Trade Administration, a tariff or duty (the words are used interchangeably) is a tax levied by governments on the value, including freight and insurance, of imported products. Different tariffs are applied on different products by different countries. Some countries have very high duties and taxes, and others relatively low duties and taxes. National sales and local taxes, and in some instances customs fees, are often charged in addition to the tariff. The tariff, along with the other assessments, is collected at the time of customs clearance in the foreign port. Tariffs and taxes increase the cost of a product to the foreign buyer, and may affect a product’s competitiveness in the market. (Trade.gov).
For more info, see the U.S. International Trade Administration’s Overview on Import Tariffs and Fees.
Negative Impact of Tariffs
Raising tariffs can result in higher prices to the consumer for the specific product protected and in limited choices of products for consumers. Further, it can cause a net loss of jobs in related industries, retaliation by U.S. and California trading partners, and violates the spirit of our trade agreements.
Impact of Tariffs:
A new analysis by the U.S. Chamber of Commerce outlines the state-by-state impact of retaliatory tariffs from China, the European Union, Mexico, and Canada, which have been imposed in response to new U.S. tariffs on imported goods.
$5.6 Billion in California Exports Target in Trade Retaliation
CalChamber, July 3, 2018
Urge President Trump Not to Finalize Stand-Alone Steel/Aluminum Tariff
– Commentary by Susanne Stirling