The tariffs placed on Korean imports are part of the US’s attempts to shield its domestic industries from foreign competition. These tariffs are a form of protectionism, or the practice of shielding domestic companies and industries from foreign competition by the introduction of tariffs, quotas, or other government policies.
The tariffs are usually applied to products that are imported from countries that the United States deeming as having an unfair advantage over American producers. This is often done to shield domestic companies from being undercut by foreign competitors. In the case of Korean imports, tariffs are designed to shield American manufacturers from cheaper Korean products that may otherwise flood the market and push down prices for American-made products.
Tariffs are usually designed to raise the cost of imported products from Korea, making them less appealing to customers. This raises the cost of Korean goods to the customer, making them less competitive with American-made products. The tariffs also act as a deterrent to Korean companies, making it more difficult for them to enter the American market.
The specifics of the tariffs placed on Korean imports differ, depending on the kind of product being imported. Tariffs are usually grouped as either ad valorem or a specific tariff. Ad valorem tariffs are based on the value of the products being imported, while specific tariffs are based on the number of importable items.
The tariffs placed on Korean imports are an important piece of the American economy and may have a major effect on domestic industries. American companies are more able to compete with their overseas suppliers by making imports from Korea more competitive, assuring that their companies’ continued success.