Which of these is most likely the U.S. government’s aim in taxing imported goods?

Which of these is most likely the U.S. government’s aim in taxing imported goods?

a. to protect nascent industries from foreign competition

b. to eliminate the reliance on foreign imports

c. to negatively impact international trade

d. to reduce the demand for U.S. exports

a. to protect nascent industries from foreign competition

Taxes, or tariffs used by the U. S. government act mainly to nurture indigenous industries from global market competition, especially those in a developmental stage. These “nascent industries” are new industries which have not yet developed to a state of optimum efficiency, mechanisation and thereby do not can challenge the efficient and mechanised foreign competitors. Tariffs impose a penalty on importing goods with the idea that this can grant time for domestic industries to develop and compete favourably with foreign industries that are already knee-deep in experienced and orderly production lines. This protectionist policy known as the policy of infant industries seeks to protect fledging industries in a country with a view to allowing them to grow and develop to compete effectively on the international market.