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Protective tariff
Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry.〔"Protective tariff" Collins English Dictionary-Complete & Unabridged 10th Edition.〕 Tariffs are also imposed in order to raise government revenue, or to reduce an undesirable activity (sin tax). Although a tariff can simultaneously protect domestic industry and earn government revenue, the goals of protection and revenue maximization suggest different tariff rates, entailing a tradeoff between the two aims.〔Atack, Passell, and Lee.〕
==How tariffs work==
A tariff is a tax added onto goods imported into a country; protective tariffs are taxes that render the cost of a foreign import higher than the cost of the initially costlier domestic good.〔Bianco, "Trade Barriers." ''Reference for Business''.〕 For example, if a piece of cloth cost $4 in Britain and $4 in the United States, the American government would have to impose a tariff to make the price of British cloth higher for Americans.〔Van Duyne, "How a Protective Tariff Works."〕 The underlying goal for a protective tariff is to protect domestic industry from foreign competition.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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