Thu Aug 16, 2018
To put it simply, tariffs are border taxes that are charged on goods imported into the United States. These tariffs apply to physical goods and must be paid by the importer directly to the government.
The goal behind a tariffs is to protect certain industries or types of goods. The idea is that if the price to import something, for example steel, goes high enough, manufacturers will buy domestically instead of importing. Recently, the new section 301 tariffs were introduced on over $50 billion worth of goods from China; this not only includes a wide range of products such as washing machines, electrical components, chemicals, and more - but also many raw components used to manufacture goods here in the USA. While American suppliers find their feet in this new landscape, prices to distributors and consumers alike are already being impacted.
While the political implications of tariffs are highly debated, we at TAMCO wanted to get the facts out there on tariffs and why they are used.