Tariff and Import Duties: Impact on Industries and Economies

Research Paper
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Table of Contents
Introduction................................................................................................................................3
Tariff and Import duties-Affects on the industries and the economies cost and benefits of a
tariff............................................................................................................................................4
Tariff..........................................................................................................................................4
Functions and Role of Tariffs....................................................................................................4
Costs and Benefits of Tariffs......................................................................................................4
Effects of Tariff among the Producers.......................................................................................5
Effects and Impact of Tariffs on the Government.....................................................................6
Impacts of Tariff on the Employment........................................................................................6
Pros and Cons of Tariffs............................................................................................................7
Reasons or causes of imposing tariffs........................................................................................8
Reasons or Cause for eliminating the Tariffs.............................................................................8
Australia (Import Tariffs)...........................................................................................................9
Laws relating to the import and export of Australia..................................................................9
Benefits of FTAs......................................................................................................................10
Statistical Analysis...................................................................................................................11
Australian Import Prices..........................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14
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Title - Tariff and Import duties-Affects on the industries and the economies cost and
benefits of a tariff
Introduction
In this reported study, the tariff, as well as import duties, have been discussed in relevance to
the economy of Australia. The tariff and import duties greatly impact on the various
industries and also on the economic costs and benefits of the country as well. Most of the
companies and industries at the time of international trade suffer due to unfavorable tariff and
duties. The international trade leads to increment in the number of products and services
available to the domestic consumers from which they can choose a variety of goods.
Moreover, it also decreases the cost of goods sold as the competition increases because of the
international trade. The import and export of goods referred to as in which the domestic
industries have to ship their products to the abroad (Radcliffe, 2018).
The reported study contains the various facts, figures, and stats that reflect the impact of
import duties and the tariff on the consumers and also on various industries. The tariff is
defined as the tax which has to be paid by the company or industries to the government or
associated body against the trading of goods or services (Radcliffe, 2018). Australia is a
grown and a developed country which contains certain policies, procedures, and regulations
regarding the duties and tax which is imposed on the industries accordingly. The report
highlights all the factors and elements which is concerning to the economic costs and
benefits. In addition to this, the trade barriers have also been discussed in the following report
study. Furthermore, the report comprises of various pros and cons relating to the trading and
tariffs. In the end of the reported study, the meaningful conclusion is also drawn so as to
reach among certain findings (Fouda, 2012).
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Tariff
The tariff refers to as the most common form or type of trade barrier as it is the tax which has
been imposed on the export or import of goods. The tariff can also be known by the other
names such as “Import duties”. This duty or tax is charged at the time when the goods or
products are imported to the respective economy (Fouda, 2012).
Functions and Role of Tariffs
The tariffs consist of the three primary functions which are: serving as the source of revenue
or income, protecting of the domestic industries and thereafter, preventing from the trade
distortion (Anderson & Nelgen, 2012). The income generated from the tariff leads to the
major source of revenue for the government. The major funding’s of government incurred
from the tax amounts and the duties which they imposed on the industries. When reviewed
from the past year's data it is observed that the revenue generation is the major focus for
applying of the tariff plans in the economy. However, in regards to the current era, this aim is
far away and considers the economic development as well as planning of the systematic
domestic codes which has led to reducing the impact of the tariff as the major source of
revenue in the developed countries.
The tariffs also referred to as the policy tool which has been used to protect the domestic
industries. The domestic industries are highly affected by the changes taking place in the
business condition and the market demand due to the imported goods. The tax levied on the
industries protects the welfare of the domestic industries as the prices of imported goods
become higher as compared to that of domestically produced once (Anderson & Nelgen,
2012). Tariffs are placed with the motive of keeping a competitive advantage for the
domestic industries and disadvantage for the imported goods.
Costs and Benefits of Tariffs
There is the various impact of tariff on the consumers which influences on their amount of
goods demanded and supply of the industries. There is an adverse relationship in between the
domestic goods demanded and price of the imported goods. For instance, if the price of the
imported goods increased then the demand for the domestic products increases and vice
versa. The population of the country prefers to buy those products and services which are
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