“Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.” This is the description of tariffs according to the World Trade Organization (WTO). Many years ago tariffs were used as a major source of revenue for the government in the US and many other developed countries, and this is still the case in many underdeveloped countries in Asia and Africa. This is however not the case anymore in developed countries like the US and many European countries. Tariffs are used as a protective measure in the US, mostly to protect infant industries and agricultural goods such as maize, and rice.
Tariffs are too protective in developing countries such as the US, because by adding tariffs to imported goods the middle class and lower consumers are the ones being punished with higher prices. Tariffs add to the prices of consumer goods being imported in the country as well as domestically produced goods. Domestic producers see this new opening as a way of elevating their prices and that also causes a decrease in competition and therefore the level of quality is also decreased. By removing tariffs this will cause international competition and therefore decreased prices and better quality products.
Removing tariffs will benefit you as a consumer because the prices of finished goods will decrease almost immediately, the quality of products will increase almost immediately as the producers try to remain more competitive in the market. The consumer will be introduced to a larger variety of products from other countries, and this will result in increased consummation for the producer and also a larger market of sales.
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