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Like all taxes, they are a source of government revenue. The us recently announced plans for expansive new tariffs on goods from canada, mexico and china, purportedly to stem the flow of illegal migrants and drugs. How do tariffs work a tariff is a type of trade barrier imposed by a government that acts as a tax on imports.
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Tariffs can be fixed (a constant. The us has surprised many experts with expansive new tariffs targeting traditional trade partners. What are tariffs and what purpose do they serve?
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Mainstream economists are generally skeptical of tariffs, considering them a mostly inefficient way for governments to raise money and promote prosperity.
But how do tariffs work, and are they ever successful? The tariff may be in the form of a specific or ad valorem tax. Tariffs are taxes imposed on imported goods.
