Until I saw your question, whenever I heard “tariffs” mentioned, I assumed that it always referred to imports, but you got me thinking…
Tariffs are always used to “protect” someone, maybe even benefit that someone, if they have the right connections in government (or deep lobbying pockets).
Import tariffs are used, on paper, at least, to protect the local industry.
I imagine that export tariffs are used to ensure that the local market has access to the goods being produced locally. It’s not unheard of, especially in third-world countries with very cheap labor, that it’s more profitable for companies to sell their goods abroad, which lives the local market under-supplied.
I think that an export tariff would be used to “equalize” things and either nudge manufacturers into selling locally or discourage them from exporting their products.
Until I saw your question, whenever I heard “tariffs” mentioned, I assumed that it always referred to imports, but you got me thinking…
Tariffs are always used to “protect” someone, maybe even benefit that someone, if they have the right connections in government (or deep lobbying pockets).
Import tariffs are used, on paper, at least, to protect the local industry.
I imagine that export tariffs are used to ensure that the local market has access to the goods being produced locally. It’s not unheard of, especially in third-world countries with very cheap labor, that it’s more profitable for companies to sell their goods abroad, which lives the local market under-supplied.
I think that an export tariff would be used to “equalize” things and either nudge manufacturers into selling locally or discourage them from exporting their products.
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