What's a tariff?
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.
Tariff
A customs duty or due is the indirect tax levied on the import or export of goods in international trade. In economic sense, a duty is also a kind of consumption tax. A duty levied on goods being imported is referred to as an "import duty". Similarly, a duty levied on exports is called an "export duty". A tariff, which is actually a "list" of commodities along with the leviable rate (amount) of customs duty, is popularly referred to as a customs duty.
Tariff in United States history
During the Revolution, the British blockade from 1775 to 1783 largely ended foreign trade. In the 1783–89 Confederation Period, each state set up its own trade rules, often imposing tariffs or restrictions on neighboring states. The new Constitution, which went into effect in 1789, banned interstate tariffs or trade restrictions, as well as state taxes on exports.
Tariff
Tariffs can emerge as a political issue prior to an election. In the leadup to the 2007 Australian Federal election, the Australian Labor Party announced it would undertake a review of Australian car tariffs if elected. The Liberal Party made a similar commitment, while independent candidate Nick Xenophon announced his intention to introduce tariff-based legislation as "a matter of urgency".
Bundeszollverwaltung
The Customs Service, as part of the "Finanzverwaltung" (fiscal administration), ensures the flow of revenue from federal trade tariffs and taxes (excise taxes—Branntwein taxes, electricity taxes, tobacco taxes, energy taxes, etc., including the beer tax, the revenues from which go to the German states), as well as revenues of the European Union (75% of all tariff income goes to the EU, 25% are retained to cover expenses and go to the federal government).
Water tariff
A water tariff (often called water rate in the United States and Canada) is a price assigned to water supplied by a public utility through a piped network to its customers. The term is also often applied to wastewater tariffs. Water and wastewater tariffs are not charged for water itself, but to recover the costs of water treatment, water storage, transporting it to customers, collecting and treating wastewater, as well as billing and collection. Prices paid for water itself are different from water tariffs. They exist in a few countries and are called water abstraction charges or fees. Abstraction charges are not covered in this article, but in the article on water pricing). Water tariffs vary widely in their structure and level between countries, cities and sometimes between user categories (residential, commercial, industrial or public buildings). The mechanisms to adjust tariffs also vary widely.
Telecommunications tariff
At a minimum, tariffs imposed must cover the cost of providing the service to the consumer. The consumer may be the final user or an intermediary such as a service provider. If a telecommunications operator cannot recover its costs, it will make a loss and the company will go bankrupt. Tariffs must also be used to cover maintenance, additional research and other indirect costs associated with providing the service. However, telecommunications service providers must be careful not to over-price each service, as prices have a direct influence on demand for that service (see supply and demand). Such an operator must constantly balance the need to provide cheaper rates, especially if there is strong competition, with the cost of maintaining the service at an optimum quality that is acceptable to the customer. If an operator charges too much, it risks alienating its customers, resulting in a loss of traffic and therefore revenue; if they charge too little, they will have insufficient capital to maintain the network's quality of Service. Over time this will result in customer attrition.
Tariff
The tariff has been used as a political tool to establish an independent nation; for example, the United States Tariff Act of 1789, signed specifically on July 4, was called the "Second Declaration of Independence" by newspapers because it was intended to be the economic means to achieve the political goal of a sovereign and independent United States.
Non-tariff barriers to trade
Non-tariff barriers to trade (NTBs) or sometimes called "Non-Tariff Measures (NTMs)" are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. The Southern African Development Community (SADC) defines a non-tariff barrier as ""any obstacle to international trade that is not an import or export duty. They may take the form of import quotas, subsidies, customs delays, technical barriers, or other systems preventing or impeding trade."" According to the World Trade Organization, non-tariff barriers to trade include import licensing, rules for valuation of goods at customs, pre-shipment inspections, rules of origin ('made in'), and trade prepared investment measures.
Tariff
With regard to independent third world countries or countries that did not have colony status in the 19th century (most of Latin America, China, Thailand, the entire Middle East), Western countries had exerted such pressure that most of them had signed treaties providing for the abolition of import duties. They were forced to open their markets to Western products, which allowed the massive entry of imported manufactured goods. Customs legislation could not provide for tariffs higher than 5% of the import value of the goods. Most of these "unequal treaties" were signed between 1810 and 1850, mainly at the initiative of the British.
1880 United States presidential election
Tariff policy was a source of conflict in late 19th-century American politics. During the Civil War, Congress raised protective tariffs to new heights. This was done partly to pay for the war, but partly because high tariffs were popular in the North. A high tariff meant that foreign goods were more expensive, which made it easier for American businesses to sell goods domestically. Republicans supported high tariffs as a way to protect American jobs and increase prosperity. Democrats generally condemned them as a source of higher prices for goods, whereas the higher revenues that they generated for the federal government were not needed after the conclusion of the Civil War. Many Northern Democrats supported high tariffs, however, for the same economic reasons that Northern Republicans did. In the interest of party unity, they often sought to avoid the question as much as possible.
First Report on the Public Credit
A consensus arose in Congress that the primary source of revenue be tariff and tonnage duties. These fees would serve to cover operating expenses for the central government as well as to pay interest and principal on foreign and domestic debt. Under the guidance of Representative James Madison, leader of the House, a tariff act was passed on July 4, 1789.
Henry George
George was opposed to tariffs, which were at the time both the major method of protectionist trade policy and an important source of federal revenue, the federal income tax having not yet been introduced. He argued that tariffs kept prices high for consumers, while failing to produce any increase in overall wages. He also believed that tariffs protected monopolistic companies from competition, thus augmenting their power. Free trade became a major issue in federal politics and his book "Protection or Free Trade" was the first book to be read entirely into the Congressional Record. It was read by five Democratic congressmen.
Tariff Act
Other countries
Tariff in United States history
"I use no porter or cheese in my family, but such as is made in America," the inaugural President George Washington wrote, boasting that these domestic products are "of an excellent quality." One of the first acts of Congress Washington signed was a tariff among whose stated purpose was "the encouragement and protection of manufactures.".In his 1790 State of the Union Address, Washington justified his tariff policy for national security reasons:
Tariff in United States history
The tariff history of the United States spans from 1789 to present. The first tariff law passed by the U.S. Congress, acting under the then-recently ratified Constitution, was the Tariff of 1789. Its purpose was to generate revenue for the federal government (to run the government and to pay the interest on its debt), and also to act as a protective barrier around newly starting domestic industries. An Import tax set by tariff rates was collected by treasury agents before goods could be unloaded at U.S. ports.
Import Surtaxes
Import surtaxes, also known as special tariffs, are extra taxes on top of the normal import tax of imported goods, with the extra taxes being reserved for some purposes. They are different from import duty, which is not reflected in the customs tariff and is set for a specific purpose. Often, they depend on their level of taxation, which is the specific purpose for their collection. They are usually temporary or one-off.
Tariff in United States history
Tariffs soon became a major political issue as the Whigs (1832–1852) and (after 1854) the Republicans wanted to protect their mostly northern industries and constituents by voting for higher tariffs and the Southern Democrats, which had very little industry but imported many goods voted for lower tariffs. Each party as it came into power voted to raise or lower tariffs under the constraints that the Federal Government always needed a certain level of revenues. The United States public debt was paid off in 1834 and President Andrew Jackson, a strong Southern Democrat, oversaw the cutting of the tariff rates roughly in half and eliminating nearly all federal excise taxes in about 1835.
Trump tariffs
The Trump tariffs are a series of tariffs imposed during the presidency of Donald Trump as part of his economic policy. In January 2018, Trump imposed tariffs on solar panels and washing machines of 30 to 50 percent. Later the same year he imposed tariffs on steel (25%) and aluminum (10%) from most countries. On June 1, 2018, this was extended on the European Union, Canada, and Mexico. The only countries which remain exempted from the steel and aluminum tariffs are Australia and Argentina. Separately, on July 6, the Trump administration set a tariff of 25% on 818 categories of goods imported from China worth $50 billion.
Tariff in United States history
The "Trump tariffs" were imposed by executive order (not by act of Congress) during the presidency of Donald Trump as part of his economic policy. In January 2018, Trump imposed tariffs on solar panels and washing machines of 30 to 50 percent. He soon imposed tariffs on steel (25%) and aluminum (10%) from most countries. On June 1, 2018, this was extended on the European Union, Canada, and Mexico. The only countries which remain exempted from the steel and aluminum tariffs are Australia and Argentina. Separately, on July 6, the Trump administration set a tariff of 25% on 818 categories of goods imported from China worth $50 billion.
Fuel tax
A fuel tax (also known as a petrol, gasoline or gas tax, or as a fuel duty) is an excise tax imposed on the sale of fuel. In most countries the fuel tax is imposed on fuels which are intended for transportation. Fuels used to power agricultural vehicles, and/or home heating oil which is similar to diesel are taxed at a different, usually lower rate. The fuel tax receipts are often dedicated or hypothecated to transportation projects so that the fuel tax is considered by many a user fee. In other countries, the fuel tax is a source of general revenue. Sometimes, the fuel tax is used as an ecotax, to promote ecological sustainability. Fuel taxes are often considered regressive taxes.
Eco-Tariffs
An Eco-tariff, also known as an environmental tariff, is a trade barrier erected for the purpose of reducing pollution and improving the environment. These trade barriers may take the form of import or export taxes on products that have a large carbon footprint or are imported from countries with lax environmental regulations.
Customs war
A Customs war, also known as a "toll war" or "tariff war", is a type of economic conflict between two or more states. In order to pressure one of the states, the other raises taxes or tariffs for some of the products of that state. As a reprisal, the latter state may also increase the tariffs.
Tariff of 1789
The import fees "represented a compromise between the advocates of a high protective tariff and those who favored a tariff for revenue only [to maintain the central government]." Charges up to fifty percent were imposed on selected manufactured and agricultural goods, including "steel, ships, cordage, tobacco, salt, indigo [and] cloth." On the majority of items subject to duty, a five percent fee was levied, "ad valorem". Molasses, an indispensable ingredient for Northeastern rum producers, was lowered from 6¢ per gallon to 2.5¢. 
Madison modified the terms of the tariff to balance sectional conflicts but conceded that articles subject to high duties "were pretty generally taxed for the benefit of the manufacturing part of the northern community." He acknowledged the South, the main wealth-producing part of the nation, would inevitably "shoulder a disproportionate share of the financial burden involved in the transforming the United States into a commercial, manufacturing, and maritime power."
List of tariffs in the United States
This is a list of United States tariffs.
Walker tariff
The Walker Tariff was a set of tariff rates adopted by the United States in 1846. The Walker Tariff was enacted by the Democrats, and made substantial cuts in the high rates of the "Black Tariff" of 1842, enacted by the Whigs. It was based on a report by Secretary of the Treasury Robert J. Walker. The Walker Tariff reduced tariff rates from 32% to 25%; it coincided with Britain's repeal of the Corn Laws and led to an increase in trade. It was one of the lowest tariffs in American history.
Tariff in United States history
Higher tariffs were adopted during and after the War of 1812, when nationalists such as Henry Clay and John C. Calhoun saw the need for more federal income and more industry. In wartime, they declared, having a home industry was a necessity to avoid shortages. Likewise owners of the small new factories that were springing up in the northeast to mass-produce boots, hats, nails and other common items wanted higher tariffs that would significantly protect them when the more efficient British producers returned after the war ended. A 10% discount on the customs tax was offered on items imported in American ships, so that the American merchant marine would be supported.
Feed-in tariff
A feed-in tariff can differentiate on the basis of marginal cost. This is a theoretical alternative which is based on the concept of price differentiation (Finon). Under such a policy the tariff price ranges from some level slightly above the spot rate to the price required to obtain the optimal level of production determined by the government. Firms with lower marginal costs receive prices on the lower end of the spectrum that increase their revenue but not by as much as under the uniform feed-in tariff. The more marginal producers face the higher tariff price. This version of the policy has two objectives. The first is to reduce the profitability of certain production sites.
Tariff
When tariffs are an integral element of a country's technology strategy, some economists believe that such tariffs can be highly effective in helping to increase and maintain the country's economic health. Other economists might be less enthusiastic, as tariffs may reduce trade and there may be many spillovers and externalities involved with trade and tariffs. The existence of these externalities makes the imposition of tariffs a rather ambiguous strategy. As an integral part of the technology strategy, tariffs are effective in supporting the technology strategy's function of enabling the country to outmaneuver the competition in the acquisition and utilization of technology in order to produce products and provide services that excel at satisfying the customer needs for a competitive advantage in domestic and foreign markets. The notion that government and policy would be effective at finding new and infant technologies, rather than supporting existing politically motivated industry, rather than, say, international technology venture specialists, is however, unproven.
Tariff
A Customs authority in each country is responsible for collecting taxes on the import into or export of goods out of the country. Normally the Customs authority, operating under national law, is authorized to examine cargo in order to ascertain actual description, specification volume or quantity, so that the assessable value and the rate of duty may be correctly determined and applied.
Schedules of concessions
Schedules of concessions are documents in which the specific commitments are listed. World Trade Organization (WTO) negotiations produce general rules that apply to all members, and specific commitments made by individual member governments. For trade in goods in general, these consist of maximum tariff levels. For agriculture they also include tariff quotas, limits on export subsidies, and some kinds of domestic support. The goods schedules are annexed to the General Agreement on Tariffs and Trade (GATT) and are “bound” (GATT Article II).
Tariff
Trade deficits mean that consumers buy too much foreign goods and too few domestic products. According to Keynesian theory, trade deficits are harmful. Countries that import more than they export weaken their economies. As the trade deficit increases, unemployment or poverty increases and GDP slows down. And surplus countries getting richer at the expense of deficit countries. They destroy the production of their trading partners. John Maynard Keynes thought that surplus countries should be taxed to avoid trade imbalances. The tariff is used to equalize the trade balance in order to protect domestic workers. Peter Temin explain that "a tariff is an expansionary policy, like a devaluation as it diverts demand from foreign to home producers".
Tariff
Many countries allow a traveler to bring goods into the country duty-free. These goods may be bought at ports and airports or sometimes within one country without attracting the usual government taxes and then brought into another country duty-free. Some countries impose allowances which limit the number or value of duty-free items that one person can bring into the country. These restrictions often apply to tobacco, wine, spirits, cosmetics, gifts and souvenirs. Often foreign diplomats and UN officials are entitled to duty-free goods. Duty-free goods are imported and stocked in what is called a bonded warehouse.
Tariff in United States history
According to Michael Lind, protectionism was America's de facto policy from the passage of the Tariff of 1816 to World War II, "switching to free trade only in 1945. It has been argued that one of the underlying motivations for the American Revolution itself was a desire to industrialize, and reverse the trade deficit with Britain, which had grown by a factor of ten in the space of a few decades, from £67,000 (1721–30) to £739,000 (1761–70).
Tariff of 1832
The Tariff of 1832 (22nd Congress, session 1, ch. 227, , enacted July 14, 1832) was a protectionist tariff in the United States. Enacted under Andrew Jackson's presidency, it was largely written by former President John Quincy Adams, who had been elected to the House of Representatives and appointed chairman of the Committee on Manufactures. It reduced the existing tariffs to remedy the conflict created by the tariff of 1828, but it was still deemed unsatisfactory by some in the South, especially in South Carolina. South Carolinian opposition to this tariff and its predecessor, the Tariff of Abominations, caused the Nullification Crisis. As a result of this crisis, the 1832 Tariff was replaced by the Compromise Tariff of 1833.
Tariff
The overall change in welfare = Change in Consumer Surplus + Change in Producer Surplus + Change in Government Revenue = (-A-B-C-D) + A + C = -B-D. The final state after imposition of the tariff is indicated in the second diagram, with overall welfare reduced by the areas labeled "societal losses", which correspond to areas B and D in the first diagram. The losses to domestic consumers are greater than the combined benefits to domestic producers and government.
Trump tariffs
On March 22, 2018, Trump signed a memorandum under the Section 301 of the Trade Act of 1974, instructing the United States Trade Representative (USTR) to apply tariffs of $50 billion on Chinese goods. Trump stated that the tariffs would be imposed due to Chinese theft of U.S intellectual property. Trump said that his planned tariffs on Chinese imports would make the United States "a much stronger, much richer nation." However, the steps toward imposing the tariffs led to increased concerns of a global trade war.
Tariff of 1789
The Tariff Act of 1789, was the first major Act passed in the United States under its present Constitution of 1789 and had two purposes as stated in Section I of the Act which reads as follows;
Tariff of 1824
The Tariff of 1824 (Sectional Tariff of 1824, ch. 4, , enacted May 22, 1824) was a protective tariff in the United States designed to protect American industry from cheaper British commodities, especially iron products, wool and cotton textiles, and agricultural goods.
Tariff in United States history
The American Civil War (1861-1865) was partially fought over the issue of tariffs. The agrarian interests of the South were opposed to any protection, while the manufacturing interests of the North wanted to maintain it. The fledgling Republican Party led by Abraham Lincoln, who called himself a "Henry Clay tariff Whig", strongly opposed free trade, and implemented a 44-percent tariff during the Civil War—in part to pay for railroad subsidies and for the war effort, and to protect favored industries. In 1847, he declared: ""Give us a protective tariff, and we shall have the greatest nation on earth"".
Tariff in United States history
The Canadian-American Reciprocity Treaty increased trade between 1855 and its ending in 1866. When it ended Canada turned to tariffs. The National Policy was a Canadian economic program introduced by John A. Macdonald's Conservative Party in 1879 after it returned to power. It had been an official policy, however, since 1876. It was based on high tariffs to protect Canada's manufacturing industry. Macdonald campaigned on the policy in the 1878 election, and handily beat the Liberal Party, which supported free trade.
Tariff in United States history
Democrats were divided on the issue, in large part because of pro-tariff elements in the Pennsylvania party who wanted to protect the growing iron industry, as well as pockets of high tariff support in nearby industrializing states. However President Grover Cleveland made low tariffs the centerpiece of Democratic Party policies in the late 1880s. His argument is that high tariffs were an unnecessary and unfair tax on consumers. The South and West generally supported low tariffs, and the industrial East high tariffs. Republican William McKinley was the outstanding spokesman for high tariffs, promising it would bring prosperity for all groups.
Protectionism in the United States
The Tariff Act of 1789 imposed the first national source of revenue for the newly formed United States. The new U.S. Constitution ratified in 1789, allowed only the federal government to levy uniform tariffs. Only the federal government could set tariff rates (customs), so the old system of separate state rates disappeared. The new law taxed all imports at rates from 5 to 15 percent. These rates were primarily designed to generate revenue to pay the annual expenses of the federal government and the national debt and the debts the states had accumulated during the American War of Independence and to also promote manufactures and independence from foreign nations, especially for defense needs. Hamilton believed that all Revolutionary War debt should be paid in full to establish and keep U.S. financial credibility. In addition to income in his Report on Manufactures Treasury Secretary Alexander Hamilton proposed a far-reaching plan to use protective tariffs as a lever for rapid industrialization. In the late 18th century the industrial age was just starting and the United States had little or no textile industry—the heart of the early Industrial Revolution. The British government having just lost the Revolutionary War tried to maintain their near monopoly on cheap and efficient textile manufacturing by prohibiting the export of textile machines, machine models or the emigration of people familiar with these machines. Clothing in the early United States was nearly all hand made by a very time consuming and expensive process—just like it had been made for centuries before. The new textile manufacturing techniques in Britain were often over thirty times cheaper as well as being easier to use, more efficient and productive. Hamilton believed that a stiff tariff on imports would not only raise income but "protect" and help subsidize early efforts at setting up manufacturing facilities that could compete with British products.
Tariff of 1832
Enacted on July 13, 1832, this was referred to as a protectionist tariff in the United States. The purpose of this tariff was to act as remedy for the conflict created by the Tariff of 1828. Mainly, the protective Tariff of 1828 was created in such a way that it intended to protect the industry in the north. Because of this, the Tariff of 1828 was also called the Tariff of Abominations by Southern states as it seemed unfair on the part of the government to favor the North by sidelining the south. As compared to the hype created about the protective Tariff of 1832, it proved to be a far cry from fulfilling the demands of the south. Its predecessor pushed the duties on citizens which were as high as 45 percent on the value of specific manufactured goods, while 1832 act brought it down to 35%. For instance, the duty on hemp, which had been $60 a ton in 1828, was reduced to a duty of $40, as a result of compromise Tariff of 1832. Even then southerners were not happy with it. Eventually, their unrest and dissatisfaction was what led to the nullification crisis. Along with that, another bill was passed, Tariff of 1833.
Tariff
An externality is the term used when the price of a product does not reflect its cost or real economic value. The classic negative externality is environmental degradation, which reduces the value of natural resources without increasing the price of the product that has caused them harm. The classic positive externality is technological encroachment, where one company's invention of a product allows others to copy or build on it, generating wealth that the original company cannot capture. If prices are wrong due to positive or negative externalities, free trade will produce sub-optimal results.
Protective tariff
Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry. They aim to make imported goods cost more than equivalent goods produced domestically, thereby causing sales of domestically produced goods to rise; supporting local industry. Tariffs are also imposed in order to raise government revenue, or to reduce an undesirable activity (sin tax). Although a tariff can simultaneously protect domestic industry and earn government revenue, the goals of protection and revenue maximization suggest different tariff rates, entailing a tradeoff between the two aims.
Tariff in United States history
With tariffs providing the basic federal revenue, an embargo on trade, or an enemy blockade, would threaten havoc. This happened in connection with the American economic warfare against Britain in the 1807–15 period. In 1807 imports dropped by more than half and some products became much more expensive or unobtainable. Congress passed the Embargo Act of 1807 and the Non-Intercourse Act (1809) to punish British and French governments for their actions; unfortunately their main effect was to reduce imports even more. The War of 1812 brought a similar set of problems as U.S. trade was again restricted by British naval blockades. The fiscal crisis was made much worse by the abolition of the First Bank of the U.S., which was the national bank. It was reestablished right after the war.
The lack of imported goods relatively quickly gave very strong incentives to start building several U.S. industries in the Northeast. Textiles and machinery manufacturing plants especially grew. Many new industries were set up and run profitably during the wars and about half of them failed after hostilities ceased and normal import competition resumed. Industry in the U.S. was advancing up the skill set, innovation knowledge and organization curve as they adapted to the Industrial Revolution's new machines and techniques.
McKinley Tariff
Tariffs, taxes on foreign goods entering a country, served two purposes for the United States in the late 19th century. One was to raise revenue for the federal government, and the other was to protect domestic manufacturers from foreign competition, which is known as protectionism.
Presidency of George Washington
One of the most pressing issues facing the First Congress during its inaugural session was the issue of how to raise revenue for the federal government. Because direct taxes were politically unfeasible, Congress turned to the tariff as the main source of funding. The tariffs could also protect nascent American manufacturing by increasing the cost of imported goods, many of which came from Britain. Each region sought favorable terms for the duties on various goods. Because the federal government would be unable to even pay the salaries of its officials without passage of the bill, members of Congress were strongly motivated to reach a compromise. In July, Congress finally passed the Tariff of 1789, which Washington signed into law. The act created a uniform impost on goods carried by foreign ships, while also establishing a much smaller tax on goods carried by American-owned ships. The tariffs established by this and later acts would make up the vast majority of government revenue; more than 87 percent of the federal government's revenue between 1789 and 1800 came from import duties.
Protectionism in the United States
All tariffs were on a long list of goods (dutiable goods) with different customs rates and some goods on a "free" list. Congress spent enormous amounts of time figuring out these tariff import tax schedules.
Tariff
Customs duty is calculated on the determination of the "assessable value" in case of those items for which the duty is levied "ad valorem". This is often the transaction value unless a customs officer determines assessable value in accordance with the Harmonized System. For certain items like petroleum and alcohol, customs duty is realized at a "specific rate" applied to the volume of the import or export consignments.
Non-tariff barriers to trade
One of the reasons why industrialized countries have moved from tariffs to NTBs is the fact that developed countries have sources of income other than tariffs. Historically, in the formation of nation-states, governments had to get funding. They received it through the introduction of tariffs. This explains the fact that most developing countries still rely on tariffs as a way to finance their spending. Developed countries can afford not to depend on tariffs, at the same time developing NTBs as a possible way of international trade regulation. The second reason for the transition to NTBs is that these tariffs can be used to support weak industries or compensation of industries, which have been affected negatively by the reduction of tariffs. The third reason for the popularity of NTBs is the ability of interest groups to influence the process in the absence of opportunities to obtain government support for the tariffs.
Tariff of 1883
President Chester A. Arthur appointed a commission in May 1882 to recommend how much tariff rates should be reduced. The issue was controversial during the last three decades of the nineteenth century, making tariff revision a daunting task. Different constituents argued for opposite measures, often wanting to maintain tariffs on some items while reducing them on others. Support or opposition to tariffs often broke down along regional lines.
Customs duties in the United States
Customs duty rates may be expressed as a percentage of value or dollars and cents per unit. Rates based on value vary from zero to 20% in the 2011 schedule. Rates may be based on relevant units for the particular type of goods (per ton, per kilogram, per square meter, etc.). Some duties are based in part on value and in part on quantity. The United States applies a Customs tariff that is among the lowest in the world: 3% on average.
Taxation in the United States
The United States imposes tariffs or customs duties on imports of goods. The duty is levied at the time of import and is paid by the importer of record. Customs duties vary by country of origin and product. Goods from many countries are exempt from duty under various trade agreements. Certain types of goods are exempt from duty regardless of source. Customs rules differ from other import restrictions. Failure to properly comply with customs rules can result in seizure of goods and criminal penalties against involved parties. United States Customs and Border Protection ("CBP") enforces customs rules.
Tariff in United States history
Henry Clay and his Whig Party, envisioning a rapid modernization based on highly productive factories, sought a high tariff. Their key argument was that startup factories, or "infant industries", would at first be less efficient than European (British) producers. Furthermore, American factory workers were paid higher wages than their European competitors. The arguments proved highly persuasive in industrial districts. Clay's position was adopted in the 1828 and 1832 Tariff Acts. The Nullification Crisis forced a partial abandonment of the Whig position. When the Whigs won victories in the 1840 and 1842 elections, taking control of Congress, they re-instituted higher tariffs with the Tariff of 1842. In examining these debates Moore finds that they were not precursors to Civil War. Instead they looked backward and continued the old debate whether foreign trade policy should embrace free trade or protectionism.
Immigration tariff
An immigration tariff is a charge levied on immigrants wanting permanent residency within a nation. As a means of applying price theory to a nation's immigration policy, it is generally advocated as an alternative to existing bureaucratic procedures as a means of moderating or better regulating the flow of immigration to a given level.
Supply management (Canada)
A tariff-rate quota (TRQ) is an international trade policy tool that combines import quotas and tariffs. By 2013, there were approximately 1200 WTO TRQs in the agricultural sector annually among supplying countries under GATT Article XIII. TRQs are a result of the "current market access requirements" and the "minimum market access requirements" forming the basis of the "Uruguay Round country schedules for agriculture." TRQs are two-tiered tariffs in which quotas of certain sensitive domestic products are assigned a quantitative threshold or WTO "minimum access commitments" for imports during a designated time period. Tariffs for imports that are at or below the threshold, are either nonexistent or very low. Imports above the quantitative threshold, are much higher, making the cost of importation intentionally prohibitive. Once imports exceed the "minimum access commitments" as required by the World Trade Organization (WTO), which allow for imports at no or lower tariffs, in Canada imports face prohibitive tariffs such as 168% for eggs, 285% for chicken, 246% for cheese and over 300% for butter. These steep tariffs have been often cited to criticize SM for creating barriers to free trade and artificially raising prices by SM critics such as David E. Bond (2010), Andrew Coyne (2011), Hall Findlay (2012) and President Trump in 2016.
Tariff
A crucial assumption in both the classical and neoclassical formulation of comparative advantage theory is that trade is balanced, which means that the value of imports is equal to the value of each country's exports. The volume of trade may change, but international trade will always be balanced at least after a certain adjustment period. The balance of trade is essential for theory because the resulting adjustment mechanism is responsible for transforming the comparative advantages of production costs into absolute price advantages. And this is necessary because it is the absolute price differences that determine the international flow of goods. Since consumers buy a good from the one who sells it cheapest, comparative advantages in terms of production costs must be transformed into absolute price advantages. In the case of floating exchange rates, it is the exchange rate adjustment mechanism that is responsible for this transformation of comparative advantages into absolute price advantages. In the case of fixed exchange rates, neoclassical theory suggests that trade is balanced by changes in wage rates.
Tariff of 1833
The Tariff of 1833 was ultimately abandoned in favor of the Black Tariff of 1842, and protectionism was reinstated. Average tariff rates nearly doubled from the initial 20% target for 1842 to about 40%, and the percentage of dutiable goods jumped from about 50% of all imports to over 85% of all imports. For some goods, such as those made with iron, the import tax constituted about two thirds of the overall price of the good. Unsurprisingly, the impact of the Black Tariff of 1842 was immediate: as the cost of imports jumped, there was a sharp decline in international trade in 1843.
Tariff-rate quota
A tariff-rate quota (TRQ) is a two-tiered international trade tariff that combines two policy instruments used historically to protect domestic production by restricting imports−Import quotas and tariffs. The quotas set a quantitative threshold for a designated time period for imports of a protected domestic product. Under that threshold, tariffs applied to imports are either very low or nonexistent. Over that threshold, imports are subject to a significantly higher tariff that is intentionally prohibitive. TRQs have been required by the World Trade Organization (WTO) since the 1995 Uruguay Round Agreement 123 contract party nations engaged in international trade.
Tariff in United States history
Currently only about 30% of all import goods are subject to tariffs in the United States, the rest are on the free list. The "average" tariffs now charged by the United States are at a historic low. The list of negotiated tariffs are listed on the Harmonized Tariff Schedule as put out by the United States International Trade Commission.
History of taxation in the United States
Tariffs contributed to sectionalism between the North and the South. The Tariff of 1824 increased tariffs in order to protect American industry in the face of cheaper imported commodities such as iron products, wool and cotton textiles, and agricultural goods from England. This tariff was the first in which the sectional interests of the North and the South truly came into conflict because the South advocated lower tariffs in order to take advantage of tariff reciprocity from England and other countries that purchased raw agricultural materials from the South.
Telecommunications tariff
Tariffing systems vary from country to country and company to company, but in general they are based on several simple principles. Tariffs are generally made up of two components:
Tariff
Thus, theory can very easily recommend a trade policy that gives us the highest possible standard of living in the short term but none in the long term. This is what happens when a nation runs a trade deficit, which necessarily means that it goes into debt with foreigners or sells its existing assets to them. Thus, the nation applies a frenzy of consumption in the short term followed by a long-term decline.
Tariff in United States history
Once industrialization and mass production started, the demand for higher and higher tariffs came from manufacturers and factory workers. They believed that their businesses should be protected from the lower wages and more efficient factories of Britain and the rest of Europe. Nearly every northern Congressman was eager to logroll a higher tariff rate for his local industry. Senator Daniel Webster, formerly a spokesperson for Boston's merchants who imported goods (and wanted low tariffs), switched dramatically to represent the manufacturing interests in the Tariff of 1824. Rates were especially high for bolts of cloth and for bar iron, of which Britain was a low-cost producer. The culmination came in the Tariff of 1828, ridiculed by free traders as the "Tariff of Abominations", with import custom duties averaging over 25 percent. Intense political opposition to higher tariffs came from Southern Democrats and plantation owners in South Carolina who had little manufacturing industry and imported some products with high tariffs. They would have to pay more for imports. They claimed their economic interest was being unfairly injured. They attempted to "nullify" the federal tariff and spoke of secession from the Union (see the Nullification Crisis). President Andrew Jackson let it be known he would use the U.S. Army to enforce the law, and no state supported the South Carolina call for nullification. A compromise ended the crisis included a lowering of the average tariff rate over ten years to a rate of 15% to 20%.
Telecommunications tariff
A telecommunications tariff is an open contract between a telecommunications service provider and the public, filed with a regulating body such as state and municipal Public Utilities Commissions and federal entities such as the Federal Communications Commission (FCC). Such tariffs outline the terms and conditions of providing telecommunications service to the public including rates, fees, and charges.
Tariff
Before the new Constitution took effect in 1788, the Congress could not levy taxes--it sold land or begged money from the states. The new national government needed revenue and decided to depend upon a tax on imports with the Tariff of 1789. The policy of the U.S. before 1860 was low tariffs "for revenue only" (since duties continued to fund the national government). A high tariff was attempted in 1828 but the South denounced it as a "Tariff of Abominations" and it almost caused a rebellion in South Carolina until it was lowered. The policy from 1860 to 1933 was usually high protective tariffs (apart from 1913-21) After 1890, the tariff on wool did affect an important industry, but otherwise the tariffs were designed to keep American wages high. The conservative Republican tradition, typified by William McKinley was a high tariff, while the Democrats typically called for a lower tariff to help consumers.
International economics
Economists’ findings about the benefits of trade have often been rejected by government policy-makers, who have frequently sought to protect domestic industries against foreign competition by erecting barriers, such as tariffs and import quotas, against imports. Average tariff levels of around 15 per cent in the late 19th century rose to about 30 percent in the 1930s, following the passage in the United States of the Smoot–Hawley Tariff Act. Mainly as the result of international agreements under the auspices of the General Agreement on Tariffs and Trade (GATT) and subsequently the World Trade Organization (WTO),
average tariff levels were progressively reduced to about 7 per cent during the second half of the 20th century, and some other trade restrictions were also removed. The restrictions that remain are nevertheless of major economic importance: among other estimates,
the World Bank estimated in 2004 that the removal of all trade restrictions would yield benefits of over $500 billion a year by 2015.
1912 United States presidential election
Before the ratification of the Sixteenth Amendment to the United States Constitution (1913), the funding of the United States government heavily relied upon tariffs. Tariffs are a direct taxation of raw materials and manufactured goods with regard to trade. This issue was key in fracturing the Republican Party. Early in his term, President Taft had promised to stand for a lower tariff bill. Protectionism was major policy of the business oriented Republican Party.
Excise tax in the United States
Traditionally the federal government has left property taxes and sales taxes to the states and local governments for their revenue. Tariffs or customs duties on imported goods are essentially the only property taxes imposed by the U.S. federal government. Tariffs can be set only by the federal government, not by any state or local jurisdiction. For U.S. constitutional law purposes, a customs duty or tariff is nominally in a separate category from an excise tax. Excise taxes can be (and are) set by federal, state and local jurisdictions.
Tariff in United States history
Peter Temin, explains a tariff is an expansionary policy, like a devaluation as it diverts demand from foreign to home producers. He notes that exports were 7 percent of GNP in 1929, they fell by 1.5 percent of 1929 GNP in the next two years and the fall was offset by the increase in domestic demand from tariff. He concludes that contrary the popular argument, contractionary effect of the tariff was small. (Temin, P. 1989. "Lessons from the Great Depression", MIT Press, Cambridge, Mass)
German tariff of 1879
...its effects would be more equally spread over all the productive circles of the land than is the case with a system of protective duties for isolated branches of industry. The minority of the population, which does not produce at all, but exclusively consumes, will apparently be injured by a customs system favouring the entire national production. Yet if by means of such a system the aggregate sum of the values produced in the country increase, and thus the national wealth be on the whole enhanced, the non-producing parts of the population...will eventually be benefited.
In the "Reichstag" Bismarck announced that from henceforth the government's income would come from indirect rather than from direct taxation. Also, since "other states surround themselves with customs barriers it seems to me justified...that German products have a small advantage over foreign ones". The adoption of protectionism by Bismarck signalled a shift towards a greater reliance on the Conservatives for support rather than on the National Liberals. The tariff was supported by the two Conservative Parties and the Centre Party and opposed by the Progressives and the Socialists, with the Liberals divided. On 31 March Bismarck held a meeting with the Centrist deputy Ludwig Windthorst, where Bismarck agreed to relax the "Kulturkampf" against the Catholic Church in exchange for Centrist support for protection.
The committee that drafted the tariff legislation was chaired by Georg Freiherr von und zu Franckenstein. He gave his name to a clause in the legislation that limited to 130 million marks as the maximum amount the central government could receive from customs revenue and the tobacco duty. The remaining amount would go to the federal states. On 9 July 1879 the "Reichstag" voted for the Franckenstein clause by 211 votes to 122 against. On 12 July the tariff bill was voted for by a majority of 100.
Tariff
At the beginning of the 19th century, Britain's average tariff on manufactured goods was roughly 51 percent, the highest of any major nation in Europe. And even after Britain embraced free trade in most goods, it continued to tightly regulate trade in strategic capital goods, such as the machinery for the mass production of textiles. Thus seen, according to Bairoch, Britain's technological lead had been achieved ""behind high and long-lasting tariff barriers"".
Common external tariff
A common external tariff must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation; but it may also inhibit imports from countries outside the customs union and thereby diminish consumer choice and support protectionism of industries based within the customs union]]
The common external tariff is a mild form of economic union but may lead to further types of economic integration. In addition to having the same customs duties, the countries may have other common trade policies, such as having the same quotas, preferences or other non-tariff trade regulations apply to all goods entering the area, regardless of which country, within the area, they are entering.
Tariff-rate quota
In a TRQ, the quota component works together with a specified tariff level to provide the desired degree of import protection. Essentially, a TRQ is a two-tiered tariff. The first Q imports entering within the quota portion of a TRQ are usually subject to a lower tariff rate called the Inside tariff quota rate or ITQR. Imports above the quota's quantitative threshold (Q) face a much higher (usually prohibitive) Outside tariff quota rate or OTQR. The Q units are called the quota volume, and this volume serves as the cut off between the ITQR and the OTQR.
Tariff
During the 1870s and 1880s, the United States was Europe's largest supplier of cereals. There was an increasing trade imbalance between Europe and the United States until the 1900s, given that the United States had remained protectionist. The United States was (almost) free trade before 1861, and high tariff afterwards. It experienced a period of strong growth while Europe was in the midst of a depression. Around 1870, Europe's trade deficit with America represented 5% to 6% of the region's imports. It reached 32% in 1890 and 59% around 1900.
Tariff in United States history
The Republican high tariff advocates appealed to farmers with the theme that high-wage factory workers would pay premium prices for foodstuffs. This was the "home market" idea, and it won over most farmers in the Northeast, but it had little relevance to the southern and western farmers who exported most of their cotton, tobacco and wheat. In the late 1860s the wool manufacturers (based near Boston and Philadelphia) formed the first national lobby, and cut deals with wool-growing farmers in several states. Their challenge was that fastidious wool producers in Britain and Australia marketed a higher quality fleece than the Americans, and that British manufacturers had costs as low as the American mills. The result was a wool tariff that helped the farmers by a high tariff rate on imported wool—a tariff the American manufacturers had to pay—together with a high tariff on finished woolens and worsted goods.
History of tariffs in Australia
From the point of view of the form and structure of tariffs, the colonial systems had developed features which carried over to the first Australian Customs Tariff. This applied to the mix of specific and ad valorem rates, the more favorable tax treatment of intermediate inputs, the complex differentiation of tariff rates within product groups or industries, and to differential rates on imports of excisable items and the excise tax rates on similar domestic products, which gave a protective margin to imports of alcoholic beverages and tobacco.
Tariffication
The main economic issues that arise with tariffication stem from the nonequivalence of tariffs in NTBs in a number of scenarios. The issue analyzes nonequivalence arising from the existence of imperfect competition in importing countries, price instability in importing and exporting countries, and inefficient allocation of quantitative restrictions. It is shown that in all these cases the definition of an appropriate "equivalent tariff" to be used in tariffication is not straightforward, and that in general this equivalent tariff cannot be computed on the basis of only observed price differences between countries. Tariff-rate quotas, which are meant to be the main tool in implement tariffication according to the existing proposal, are analyzed in some detail. Concerning the relationship between tariffication and the other elements of the trade liberalization package, it is shown that tariffication would limit the scope of export subsidy policies, and that the existence of production and export subsidies makes observed price gaps between countries of questionable value in setting equivalent tariff levels. Finally, it is argued that the main focus on tariffication should be the conversion of NTBs to acceptable long-run (bound) tariffs rates, and considerable flexibility in the conversion process could be exercised during the transition period.
Tariff
For economic efficiency, "free trade" is often the best policy, however levying a tariff is sometimes "second best".
Eco-Tariffs
One of the major issues that are raised when discussing environmental tariffs, is the issue of a reduction in trade. The argument raised is that tariffs reduce trade and may not actually be targeting the actual source of the pollution. They argue that pollution is not just as a result of imported goods but a large part of pollution suffered occurs within the borders of a country, therefore trade would merely harming trade without actually addressing the root cause effectively.
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.”.
Tariff of 1789
In its final form, the tariff erected "an American navigation system," superseding the individual state sanctioned fees designed to protect domestic shipping during the Articles of Confederation period from 1781 to 1789.
The act established tonnage rates favorable to American carriers by charging them lower cargo fees than those imposed on foreign boats importing similar goods. Coastal trade was reserved exclusively for American flag vessels. These provisions were consistent with mercantilist policies practice by European powers at the time.
Dating from the Treaty of Paris, ending the War for Independence in 1783, Great Britain had declined to seek a commercial treaty with the United States. In addition, provisions of the treaty had gone unfulfilled, including compensation to slaveholders for slaves emancipated by the British Navy during the War and the failure to abandon military posts in the Northwest Territory. Still, Great Britain remained the dominant trading partner for the United States, the countries reverting to an essentially colonial-era trade relationship. 
Representative James Madison, presiding over the tariff debates in Congress, attempted to introduce discriminatory provisions into the tonnage legislation that would favor France and its colonial possessions and shift American trade away from Great Britain.
To effect this, Madison called for a 60¢ per ton fee upon foreign carriers lacking a commercial agreement with the United States, while France, which possessed a treaty, would be charged tonnage at 30¢. This measure alone "was equivalent to levying economic war" upon Great Britain.
Madison's proposals were intended to unify politically the agricultural and manufacturing interests in support of that commercial realignment at the national level, damaging to Great Britain and beneficial to revolutionary France.
Many representatives of northern business were wary of abandoning Great Britain as their primary trading partner and merchant marine and questioned whether France could ever act "as the principle supplier and market for the United States." 
The House of Representatives, nevertheless, initially passed Madison's "controversial" legislation, with the discriminatory provision intact. The Senate, however, removed it from the bill and sent it back to the House, where it was passed, without amendment, 31 to 19, on July 4, 1789.
The Tariff of 1789 placed France and Great Britain on an equal footing with regard to shipping, manufactures, and raw products delivered to American ports. All foreign-owned or foreign-built ships paid 50¢ per ton duty; American-owned vessels were charged 6¢ per ton.
Tariff in United States history
Lincoln did not see a tariff as a tax on low-income Americans because it would only burden the consumer according to the amount the consumer consumed.
By the tariff system, the whole revenue is paid by the consumers of foreign goods… the burthen of revenue falls almost entirely on the wealthy and luxurious few, while the substantial and laboring many who live at home, and upon home products, go entirely free.
History of taxation in the United States
Tariffs have played different roles in trade policy and the economic history of the United States. Tariffs were the largest source of federal revenue from the 1790s to the eve of World War I, until it was surpassed by income taxes. Since the revenue from the tariff was considered essential and easy to collect at the major ports, it was agreed the nation should have a tariff for revenue purposes.
History of taxation in the United States
When Alexander Hamilton was the United States Secretary of the Treasury he issued the Report on Manufactures, which reasoned that applying tariffs in moderation, in addition to raising revenue to fund the federal government, would also encourage domestic manufacturing and growth of the economy by applying the funds raised in part towards subsidies (called bounties in his time) to manufacturers. The main purposes sought by Hamilton through the tariff were to: (1) protect American infant industry for a short term until it could compete; (2) raise revenue to pay the expenses of government; (3) raise revenue to directly support manufacturing through bounties (subsidies). This resulted in the passage of three tariffs by Congress, the Tariff of 1789, the Tariff of 1790, and the Tariff of 1792 which progressively increased tariffs.
Tariff in United States history
Tariffs up to the Smoot–Hawley Tariff Act of 1930, were set by Congress after many months of testimony and negotiations. In 1934, the U.S. Congress, in a rare delegation of authority, passed the Reciprocal Tariff Act of 1934, which authorized the executive branch to negotiate bilateral tariff reduction agreements with other countries. The prevailing view then was that trade liberalization may help stimulate economic growth. However, no one country was willing to liberalize unilaterally. Between 1934 and 1945, the executive branch negotiated over 32 bilateral trade liberalization agreements with other countries. The belief that low tariffs led to a more prosperous country are now the predominant belief with some exceptions. Multilateralism is embodied in the seven tariff reduction rounds that occurred between 1948 and 1994. In each of these "rounds", all General Agreement on Tariffs and Trade (GATT) members came together to negotiate mutually agreeable trade liberalization packages and reciprocal tariff rates. In the Uruguay round in 1994, the World Trade Organization (WTO) was established to help establish uniform tariff rates.
Reciprocal Tariff Act
Before the RTAA, if Congress wanted to establish a lower tariff for particular imports, it would act unilaterally, taking the foreign country's tariff rate as fixed. Congress would choose a tariff rate that was either a little higher or lower than the median preferred tariff, depending upon the composition of the Congress. Generally, a Republican controlled Congress would prefer higher tariffs and a Democrat controlled Congress would prefer lower tariffs. Thus, tariffs were chosen based on the domestic politics of the United States. Individual members of Congress were under great pressure from industry lobbyists to raise tariffs to protect them from the negative effects of foreign imports. 
The RTAA’s novel approach freed Roosevelt and Congress to break this trend of tariff increases. First, it tied tariff reductions by the United States to reciprocal tariff reductions with international partners. It also allowed Congress to approve the tariffs with a simple majority, as opposed to the requisite two-thirds majority necessary for other treaties. Lastly, the president had the authority to negotiate the terms. These three innovations in trade policy created the political will and feasibility to enact a more liberal American trade policy. 
Reciprocity was an important tenet of the trade agreements brokered under RTAA because it gave Congress more of an incentive to lower tariffs. As more foreign countries entered into bilateral tariff reduction deals with the United States, American exporters had more incentive to lobby Congress for even lower tariffs across many industries. 
By giving the President the authority to negotiate these deals, the Congress effectively ceded a part of their power (authorized under US Constitution, Article I, Section VIII) to the executive branch. The President had to consider the aggregate welfare of all Americans, his foreign policy priorities, and what was feasible with other countries in making his decisions on tariffs. These considerations generally left presidents more inclined to reduce tariffs than the Congress. Whether Roosevelt or Congress foresaw this result is a matter of historical debate.
Excise tax in the United States
An example of a "state of being" tax is an ad valorem property tax—which is not an excise. Customs or tariffs are based on the property (usually imported goods) as a "state of being" or ad valorem taxes and are also typically not called excise taxes. Excise taxes are collected by producers and retailers and paid to the Internal Revenue Service or other state and/or local government tax collection agency. Historical federal excise tax collections to 1945 are listed in the "Historical Statistics of the United States" and more recent federal excise tax data is listed in the White House historical tables.
Tariff (disambiguation)
A tariff may also refer to:
General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade (GATT) was a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its preamble, its purpose was the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis."
Bluffton Movement
The impetus for the movement was the passing in congress of the Tariff of 1842, a protectionist tariff that enraged southern planters. The tariff raised the amount of dutiable goods as well as the rate of taxation on all goods, and it resulted in a sharp decrease in international trade. That was beneficial to northern industrialists, who no longer had to worry about competition from overseas, but greatly hurt southern planters, who relied on international markets for their products. The inequity of the tariff, in direct contrast to the Compromise of 1833, which lowered the protectionist tariffs for the South, caused massive opposition.
German tariff of 1879
The tariff imposed moderate import duties on grain and raised the duties on livestock products. Wheat, rye and oats were subject to a duty of 1 mark per 100kg; on barley and maize 50 pfennigs; on flour 2 marks; on meat 12 marks; on oxen 20 marks; sheep 1 mark; pigs 25 marks. Raw materials for industry such as cotton, flax, hemp, wool and coal were admitted duty free. The duty on pig iron was 1 mark; on semi-manufactured goods made from iron and steel it ranged from 2 to 2.5 marks; for other iron and steel goods the duty ranged from 7.5 to 15 marks. On machinery it was 3 to 8 marks; for yarns and textiles the rates were 15 to 30 per cent. "ad valorem".
Trade agreement
A trade agreement (also known as trade pact) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. When two or more countries agree on terms that helps them trade with each other. The most common trade agreements are of the preferential and free trade types are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories. 
The logic of formal trade agreements is that they outline what is agreed upon and the punishments for deviation from the rules set in the agreement. Trade agreements therefore make misunderstandings less likely, and create confidence on both sides that cheating will be punished; this increases the likelihood of long-term cooperation. An international organization, such as the IMF, can further incentivize cooperation by monitoring compliance with agreements and reporting third countries of the violations. Monitoring by international agencies may be needed to detect non-tariff barriers, which are disguised attempts at creating trade barriers.
History of taxation in the United States
While the government was originally funded via tariffs upon imported goods, tariffs now represent only a minor portion of federal revenues. Non-tax fees are generated to recompense agencies for services or to fill specific trust funds such as the fee placed upon airline tickets for airport expansion and air traffic control. Often the receipts intended to be placed in "trust" funds are used for other purposes, with the government posting an IOU ('I owe you') in the form of a federal bond or other accounting instrument, then spending the money on unrelated current expenditures.
Individual communication services and tariffs
Individual communication services and tariffs is the regulatory protected ability for an identified user to obtain from a communication service provider, by a bilateral specific contract, a combination of the service and related content, at a specific price (called a tariff chosen by the user) corresponding to a user request specified with a service demand profile and some duration.
Walker tariff
The Walker Tariff produced the nation's first standardized tariff: rather than setting fixed rates for specific items on a case-by-case basis, it established general schedules into which all goods could be classified, subject to defined ad valorem rates. The bill reduced rates across the board on most major import items save luxury goods such as tobacco and alcoholic beverages.
Tariff in United States history
Tariffs have historically served a key role in the nation's foreign trade policy and as a source of federal income. Tariffs were the greatest (approaching 95% at times) source of federal revenue until the Federal income tax began after 1913. For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports.
Tariff
The American Civil War (1861-1865) allowed the industrial Northeast to get the high tariffs it wanted. The money was needed to finance the war and war debt, but for the next half-century high tariffs were a policy designed to encourage rapid industrialisation and protect the high American wage rates. The Democrats called for low tariffs help poor consumers, but they always failed until 1913. The Republican Party, which is heir to the Whigs, makes protectionism a central theme in its electoral platforms. According to the party, it is right to favour domestic producers and tax foreigners and consumers of imported luxury products. Republicans prioritize the protection function, while the need to provide revenue to the federal budget is only a secondary objective.
Tariff of 1833
The Tariff of 1828, enacted on May 19, 1828, was a protective tariff passed by the U.S. Congress. It was the highest tariff in U.S. peacetime history up to that point, enacting a 62% tax on 92% of all imported goods. The goal of the tariff was to protect northern U.S. industries by placing a tax on low-priced imported goods, which had been driving northern industries out of business. Nevertheless, the South strongly resisted the Tariff of 1828 for several reasons. Firstly, they were forced to pay higher prices on goods that the region did not produce, and secondly, the reduced importation of British goods made it difficult for the British to pay for cotton imported from the South. In essence, the South was simultaneously forced to pay more for goods and to face reduced income from sales of raw materials. These unfortunate results caused many in the South to refer to the Tariff of 1828 as the Tariff of Abominations.