LawLoveLegal

Understanding Tariffs: A Key Element in Global Trade Tariffs are taxes imposed on imported goods and services by a country’s government. These duties are levied to regulate trade, protect domestic industries, and generate revenue. Tariffs can be classified into two main types: Ad Valorem Tariffs : Levied as a percentage of the value of the goods. Specific Tariffs : Charged as a fixed amount per unit of the imported product. Countries impose tariffs for various reasons, including safeguarding local businesses, reducing dependency on foreign goods, and addressing trade imbalances. However, excessive tariffs can disrupt international trade, leading to economic slowdowns and strained diplomatic relations. Why is the U.S. Increasing Tariffs on Imports? The U.S. has adopted a more protectionist trade policy in recent years, implementing tariffs on imports from various countries, including India. The primary reasons behind these tariffs include: Reducing Trade Deficits : The U.S. ...