May 18, 2024
What is a tariff, anyway?
By Ira H. Schoen
I have been patiently waiting for someone in the media to explain the meaning of “tariff” to the general public, rather than going on endlessly about the implications of imposing, for example, a 50% tariff on vehicles, a 20% tariff on steel, and a 10% tariff on aluminum on foreign nations, specifically now on China.
It’s my belief that the general public would like an overview explaining tariffs instead of listening to political tirades from numerous politicians and knee-jerk journalists, reporters, editors, and “talking heads” about what might happen if the United States adopts these new tariffs.
I’m no economist, but my undergraduate degree from the George Washington University was in American studies. I worked at U.S. Customs in the 1980s, having interacted directly with the commissioner of customs on a number of issues, including his frustrating attempts to interest Congress in the “boring” subject of revising tariff laws for trade equality/reciprocity with foreign nations. Congress was much more interested in U.S. Customs’ other mission, law enforcement, which included immigration and illegal activities including alcohol and drug interdiction, all of which I was party to as well.
U.S. Customs, at that time (until 2003), was a part of the U.S. Treasury. Why? To collect tariffs. What’s a tariff? Simply stated, it’s an import tax (AKA a duty) on foreign goods, primarily in place to protect and support U.S. economic and financial interests, including industry and defense. Tax = money (AKA revenue), and therefore the U.S. Treasury, through U.S. Customs, was directly involved.
Now let’s briefly go back in history for a perspective.
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https://www.americanthinker.com/blog/2024/05/what_is_a_tariff_anyway.html
