by Faris, Fakhrul, and Atikah
Tariff explained that a tax or duty to be paid on a particular class of imports or exports. Tariffs are an important barrier to free trade. It collected by the government. The people who pay tariffs are the people who buy the goods which tariffs are imposed on. Tariffs are used on goods is to restrict trade, as they increase their price of imported goods and services to the higher, so they making them more expensive. Tariffs have four functions which are to protect domestic jobs, to protect infant industry, to retaliate against a trading partner and last but not least government imposed tariffs to protect consumers. Tariffs are imposed on three types of the tariff which are a specific tariff, ad valorem tariff, and compound tariff. The benefits of tariffs are uneven. This is because a tariff is a tax so that government will achieve the increased revenue as imports enter the domestic market. Other than that, domestic industries also benefit from a reduction in competition as the import prices are inflated.
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