Tariffs vs Quotas: Which is Better to Import Steel Products?
Since the federal government imposed tariffs on steel products imported from Canada, we’ve had quite a few people ask us what we think of the policy, the impact it has on the American steel industry, and if it affects our ability to bring you abrasion resistant steel and other products whose raw materials come from across the border. (more…)
History of US Tariffs
Today, the United States seems to be going back to a protectionist policy that was in place for 250 years from 1789, through to the end of World War II. The average tariff during that period on goods entering the US was 38%. However, the US didn’t do this to punish countries or control the influx of products. The main reason the US charged tariffs is because they did not introduce income tax until 1917, and relied on Tariffs to finance its activities including war. At the end of WW II, most of America’s competitors’ (England, Europe, Japan, Korea, China) industrial base had been wiped out by the war. America believed it had a significant competitive advantage and wanted to export goods and services to rebuild these economies on a “tariff free basis”. The US did not fear competitive imports from these war-ravaged countries and signed on to GATT in 1947. (more…)