Elijah Geniesse

Instructor Aaron Kashtan

UWRT 1101
November 11, 2016

The United States has a very high import rate which means that the majority of
consumer products come from other countries. Which helps businesses find products
for low prices though it hurts manufacturers that live within the United States. There
are tax impositions on items that are imported but they are not heavy enough to deter
consumers from purchasing them. If there is an increase in taxes on imported goods
then people will be more willing to buy domestic products which will improve our
countries Gross Domestic Income.

The US imposes many regulations to deal with imports. These can prevent
foreign business from selling products to consumers in the united states. Some goods
are taxed higher than others simply because of their rate of demand. The process for
generating tariffs is lengthy and requires experts who have much knowledge about
products, markets, and manufacturing businesses. These experts generate formulas
and guidelines to determine tax rates for all imported products. Final tariffs are
imposed by The US Border and Customs Protection, upon entry into the US.

The counter-argument to my topic is that an increase in import taxes will increase

costs of most goods to all consumers. Due to laws and regulations, domestic
manufacturing has become very expensive. This requires businesses to manufacture in
foreign countries and import their products here in order to maintain low prices.

While higher taxes will improve domestic business it will hurt businesses who are
trying to stay competitive. Consumers will purchase less, potentially driving foreign
investors away. This will then decrease competition and US product prices will rise,
costing consumers even more money.

During the presidential debate this topic was covered widely. President-Elect,
Donald Trump, even covers this topic in the attached interview. Trump speaks about
his views on foreign relations with China and Mexico specifically. These are our two
biggest trade countries. Both countries manufacture products at much lower prices
then us, therefore the majority of consumer products in the US are imported from
these countries along with many others.

In conclusion, tariffs are imposed to regulate the amount of imports and exports
between the countries. In order to preserve some of the American money our
government imposes taxes on imported products. These tariffs increase the cost of
products that are manufactured by foreign businesses. This increase of costs will
cause an increase in purchases of domestic products. The money will then go to
businesses within the United States, in turn helping improve our financial stability and
gross domestic income. Therefore, increases in taxes on imported products will prove
beneficial to the US market as a whole.

Sources:
http://www.chinaimportal.com/blog/customs-taxes-importing-china-ultimateguide/

 https://www.dutycalculator.com/country-guides/Import-duty-taxes-whenimporting-into-the-United-States/
https://help.cbp.gov/app/answers/detail/a_id/810/~/other-taxes-or-feesrequired-to-import-goods-into-the-u.s.,-other-than-duty
https://www.cbp.gov/trade/basic-import-export/internet-purchases