purpose of imposing tariffs
The primary purpose of imposing tariffs is to offer protection to specific industries that are essential with a strong political influence. Nations may also decide to raise tariffs on their trading partners to push other states to reduce and remove certain trade barriers. The United States has used Tariffs as a source of revenue for the government. When tariffs are imposed in the United States of America, they are paid by the registered and importing firms that are located in the United States. Most of the importers of goods made in China are American companies and firms. All the items imported in the country legally are tagged with custom code. Therefore, importers are expected to inspect the tariffs, duties, and other taxes due to the imported items. It helps them to calculate what they owe the government and pay. The CPB generally does the review of the payments. If the underpayment is detected on imported goods, the importer will be served with a new bill.
Since the tariffs that are imposed on certain goods are high, the importer pays the bills down to the supply chain. For instance, some Chinese firms pay part of the bills by lowering the prices of imported goods. Importing companies cover high tariffs by increasing the cost of the product that is sold to retailers. Therefore, tariffs are paid by customers, importers, and suppliers. On some occasions, tariffs act as a form of protection to consumers and citizens of the United States of America. The government may decide to impose high tariffs on certain products that it feels are not safe for consumers. Additionally, the consumers are also protected from purchasing counterfeit products from certain countries that have been suspected of the government of the United States.