Tuesday, 8 November 2011


Tariffs are custom taxes that are imposed on imported goods. This raises the price of the import and gives an advantage to domestic products within that market. Tariffs are a barrier to trade and are used to protect a domestic industry.

VIDEO - Will tire tariffs cost consumers?

The American President is placing a 35 percent tax on tires made in China after labor unions complained that Chinese imports were forcing U.S. workers out of their jobs. What is the reaction to this news? Will these tariffs help decrease unemployment rates, or will they merely hurt consumers?