History, 27.10.2019 06:43 Ashleymsmith

Why does the federal government impose tariffs

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The federal government may impose tariffs mainly because they want to raise the revenue and to protect the domestic industries from the international or foreign competition since consumers will probably buy a foreign-product which is known to be more cheaper.

Answer from: theactualslash

The federal government imposes tariffs to raise revenue and protect the regulation of domestic goods.

Further Explanations:

The federal government is a government where whole power is vested in the hands of the central government. The states are obliged to follow the rulings of the central government. A Federal government is considered more effective as it has full authority over its states. If the Federal government implements any law, all the states have to imply that law in their respective states.

Among the authorities exercised by the Federal government one is the imposition of tariffs. Tariffs are the tax levied on the exports and imports in sovereign states. These taxes regulate the foreign trade and encourage the dependence on domestic products. These taxes are also the source of income for the federal government, which later is used for the betterment of the citizens. The funds issued from certain projects are those collected in the form of tax.

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Answer Details

Grade: High School

Subject: History

Chapter: The Espionage act

Keywords: federal government, central government, rulings, authorities exercised, tariffs, sovereign states, projects, domestic, products

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