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The general purpose is to protect local industry from the competition of cheaper imports. Through tariffs you can make them as expensive or even more expensive than local products.

The downside of this policy usually is that the countries hit by those tariffs then set up similar tariffs for your export products so that you end up protecting some of your local companies, but badly hurting others. This happened for instance during the years of the Great Depression, and it caused world trade to almost come to a halt.

Another purpose of protective tariffs is to control and limit the flow of local money and income that goes to other countries: the money paid for foreign products will not remain in your country's economy, but ultimately go to the country of the producers. Plus, corporate tax income from those companies paid to the State will not be income for your Government but for the Govenment of those other nations. This is an important reason for foreign producers like car makers to start manufacturing locally: of course part of the profits still go to the country of origin, but the companies' activities then support the local economy at a much higher level and they generate much more tax income for your own Government.

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8y ago
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12y ago

because they might want to compare prices and increase or possible and probably decrease prices so better chance of people flying over to that country to buy goos there.

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10y ago

Raise revenue and give American producers an advantage.

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Q: What is the purpose for the Federal Government to apply tariffs on imported goods?
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Related questions

Does the US federal government have the power to tax imports?

The US government may tax imported goods through a tax system called tariffs. US states have no authority over tariffs..


Is there any disadvantage to a government placing a tariffs on imported goods?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


What primary issues did Thomas Jefferson and Alexander Hamilton disagree?

tariffs on imported goods the role of states' rights powers of the federal government provided in the Constitution


Is there a disadvantage to a government placing a tariff on imported goods?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


Is there any disadvantages to a government placing a tariff imported goods?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


Is there any disadvantage a government placing a tariff on imported goods?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


Is there any disadvantage to a government placing a tariff on imported good?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


Is there any disadvantage to a government placing a tariff on imported goods?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


Is there any disadvantages to a government placing a tariff on imported goods?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


Is there any disadvantage to a government placing a tariff on a imported goods?

Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.


What tariffs were designed to provide income for the federal government?

revenue


Which level of government is responsible for tariffs on international trade?

federal