Whisky Cease Fire.
Updated: Jun 18
If like me, our friends across the pond enjoy a wee dram of Scotch whisky then they will be pleased that tariffs, which were placed on our exports to the United States have been removed and would suggest that prices for our American cousins will drop and more importantly for our manufacturers the cost of export will drop. Good news for jobs in the sector.
"Let's compete freely, Goddam tariffs! Free trade and free seas - that's what's right!"
A tariff is a tax imposed by a government of a country or of a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Wikipedia.
A tax imposed by a government are the important words in the definition above. The imposed tax is to boost the revenue for the government and is supposed to protect the manufacturers in the importing nation. In the short term this maybe the case as the as high tariffs will normally reduce the importation of a product as prices remain high on that product and obviously a higher price for the customer. This in turn will then supposedly protect the importing nations industry, in other words protectionism.
Many countries will slap tariffs on goods to protect a domestic ageing inefficien