Tuesday, February 11, 2025

Tariffs?

 

"A tariff is a tax on imported goods. Despite what the President says, it is almost always paid directly by the importer (usually a domestic firm), and never by the exporting country."

The tariff is paid by the importer...

 

 

"Tariffs are simply excise taxes on imported goods; they may be imposed for purposes of revenue or protection."
- McConnell, Economics, sixth edition (1975), p. 831

... and is used for revenue enhancement or protectionism, or both.

 


"But if nations can learn to provide themselves with full employment by their domestic policy (and, we must add, if they can also attain equilibrium in the trend of their population), there need be no important economic forces calculated to set the interest of one country against that of its neighbours."
- Chapter 24 (1936)

Tariffs are not domestic policy.

No comments: