What are the different ways in which tariffs are levied in the United Essay

What are the different ways in which tariffs are levied in the United States and what are the various types of nontariff barriers imposed in the United States - Essay ExampleProtection is achieved by raising the scathe of merchandise products so that they cost the same as those produced domestically.The government computes the tariffs in two main ways. The Ad Valorem, which means On value, involves tax that is levied as a fixed percentage of the value of the imported commodity. Currently, the U.S collects 2.5% on imported automobiles. Therefore, if the country imports $100,000 Hyundai automobiles, then the government collects $2,500 in tax (Suranovic 2012).Specific tariffs involve levying a fixed come in of tax on each unit of the imported product sold without regard to the selling price. In some elusions, the tariffs imposed may be a combination of the item and Ad Valorem (Webb 2011). For example, a specific tariff of $0.51% is levied on imported wristwatches in the U.S couple d with a $6.25% ad valorem tariff on the case and the strap. A 5.3% ad valorem tariff is also imposed on the battery (Suranovic 2012). The tariffs levied on imports vary depending on the commodities, for example, goods from a country with the status of most-favored nation may incur a different tariff compared to products from new(prenominal) trading partners.Non-tariff barriers include rules and regulations geared to keeping foreign goods out of the domestic market. They include specific limitations on trade, such as quotas. Quota refers to limiting an amount of import, for example, the U.S allows 1 million tons of sugar to be imported and not more than that (Bairstow 2011). The second barrier involves customs and administrative procedures such as antidumping practices and valuation systems. The instruction execution of standards, that is, packaging, labelling and other standard disparities are other barriers to trade that are incorporated in the U.S (Bairstow 2011). The governmen ts participation in trade through export subsidies, procurement policies, countervailing duties and domestic assistance programmes