Tariff Measure

A Tariff Measure is a trade policy measure that is an import tax measure designed to protect domestic industry or generate government revenue by imposing duty payments on imported goods.

• AKA: Import Duty, Customs Tariff, Trade Tariff, Import Tax.
• Context:
  • It can typically affect Tariff Trade Flows through tariff price increases on tariff-targeted imports.
  • It can typically protect Tariff Domestic Industry via tariff competitive advantages against tariff foreign competitors.
  • It can typically generate Tariff Government Revenue through tariff duty collection at tariff customs points.
  • It can typically trigger Tariff Retaliation from tariff trading partners via tariff countermeasures.
  • It can typically distort Tariff Market Efficiency by altering tariff price signals and tariff resource allocation.
  • ...
  • It can often lead to Tariff Consumer Costs through tariff higher prices on tariff imported products.
  • It can often cause Tariff Trade Wars via tariff escalation cycles between tariff trading nations.
  • It can often reduce Tariff Economic Welfare through tariff deadweight loss and tariff reduced competition.
  • It can often shift Tariff Production Patterns toward tariff domestic substitution from tariff efficient imports.
  • ...
  • It can range from being a Low Tariff Measure to being a High Tariff Measure, depending on its tariff rate level.
  • It can range from being a Selective Tariff Measure to being a Comprehensive Tariff Measure, depending on its tariff product coverage.
  • It can range from being a Revenue Tariff Measure to being a Protective Tariff Measure, depending on its tariff primary purpose.
  • It can range from being a Temporary Tariff Measure to being a Permanent Tariff Measure, depending on its tariff duration.
  • It can range from being a Unilateral Tariff Measure to being a Negotiated Tariff Measure, depending on its tariff implementation method.
  • It can range from being a Specific Tariff Measure to being an Ad Valorem Tariff Measure, depending on its tariff calculation method.
  • ...
  • It can interact with Trade Agreements through tariff schedule negotiations and tariff reduction commitments.
  • It can influence Supply Chains via tariff sourcing decisions and tariff production relocation.
  • It can shape Industrial Policy through tariff infant industry protection and tariff strategic sector support.
  • It can affect International Relations via tariff diplomatic tensions and tariff trade negotiations.
  • It can impact Economic Development through tariff import substitution and tariff technology transfer.
  • ...
• Example(s):
  • Historical Tariff Measures, such as:
    • Smoot-Hawley Tariff (1930), raising U.S. import dutyes and deepening Great Depression.
    • Common External Tariff, harmonizing EU member state tariffs on non-EU imports.
    • Most Favored Nation Tariff, providing equal treatment to WTO members.
  • Modern Tariff Measures, such as:
    • Trump China Tariff (2018-2020), imposing 25% duty on Chinese imports.
    • EU Carbon Border Tariff, taxing carbon-intensive imports from high-emission countrys.
    • Agricultural Tariff, protecting domestic farmers from cheap food imports.
  • Tariff Type Classifications, such as:
    • Anti-Dumping Tariff, countering below-cost exports from foreign producers.
    • Countervailing Duty Tariff, offsetting foreign government subsidy to export industry.
    • Safeguard Tariff, providing temporary protection against import surges.
  • ...
• Counter-Example(s):
  • Export Tax, which taxes outgoing goods rather than incoming imports.
  • Non-Tariff Barrier, which restricts trade through regulations rather than taxes.
  • Free Trade Agreement, which eliminates tariffs between member countrys.
  • Subsidy, which supports domestic industry through direct payments rather than import taxes.
• See: Trade Policy, Protectionism, Trade War, World Trade Organization, Free Trade, Import Substitution, Balance of Trade, Customs Duty.

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