Why were tariffs established?

Answer 1

Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.

Answer 2

Tariffs can play an important role when a nation decides to industrialize a certain part of their economy. Here is a hypothetical situation.There will always be different points of view internally by economists who are asked to study various aspects that tariffs may play if a nation decides to change their hand crafted auto industry into a mass production, assembly line style auto industry. In this hypothetical situation, a government comes to the conclusion that the nation is importing a majority of its automobiles from nations who through their industrialization methods of producing automobiles, is dominating the auto industry in their country. These imports, aside from causing a balance of payments issue, are also threatening the very existence of the fine hand crafted and costly home auto industry.

Business and government come to the conclusion that the nation can become competitive in auto making, however, the process needs help during the initial phases of industrializing their auto industry.

The help comes in the form of high tariffs on imported cars. This forces consumers to chose to pay higher prices for imports or pay lower prices from the new car industry in their own country. The tariff decision is important because the amount of the tariffs are not written in stone. Economists will debate them, and whether the tariff can really help the home industry depends on the quality of the cars it produces.

This hypothetical case covers one aspect of the tariff and the industrialization scenario. It does not speak about the political problems that tariffs will cause with a friendly trading nation whose exports will be curtailed or the domestic impact of the tariff. With that said the example does show how tariffs and industrialization are important.

Answer 3

a tariff is important because it helps the economy.

Answer 4

One of the causes that started the Civil War.

Answer 5

tariffs were good because then the government would fall