Tariff
A tariff is a tax on imports or exports between sovereign states. It is a form of regulation of foreign trade. It is a policy that taxes foreign products to encourage or protect domestic industry. It helps limit trade deficits. The tariff is historically used to protect infant industries and to allow import substitution industrialization.
History of tariffs in Australia
The pattern of tariffs and industry protection in Australia has favored manufacturers over the other two sectors producing tradeable goods: agriculture and mining. This pattern was established in the last quarter of the 19th century and it has persisted since then. The Brigden Committee Report regarded tariffs as a tax on exporters whose prices are fixed on world markets. “We may say, therefore, that the cost of tariff protection, falling ultimately on the export primary industries, falls chiefly on the owners of land, as such.”.