Targets are taxes imposed on imported products and services. Historically, tariffs were the main sources of imports of many countries and often were the main sources of federal income until the late 19th century. Today, other taxes account for most government income from developed countries. Targets are generally used as selective use of certain domestic industries, establishing foreign policy goals, or leverage negotiations for trade negotiations.
The US Constitution gives the Congress to establish an import tariff, which is partially delegated to the president. The United States is also a member of the World Trade Organization (WTO) and a number of trade agreements, including a promise related to certain tariffs. Congress and the president thus create US tariff policies in the context of rules based on global trading systems.
Rules -based global trading system
Rules -based global trading systems were established after World War II. It started with a general agreement on tariffs and trade, and later integrated into a larger contract to establish WTO. The system aimed to reduce trade barriers and prevent trade wars by establishing customs rules. One of the key rules of this system in relation to tariffs is:
- Non -discrimination. In accordance with the most preferred MFN rules, the state must extend trade concessions such as the decrease in tariffs granted to all other WTO members. There are exceptions such as priority interest rates for free trade contracts (FTAs), special processing of developing countries, and remedies to solve certain unfair trade practices.
- Binding promise. Through multilateral negotiations, the state binds the ceiling of tariffs on certain income. The ceiling is called the combination rate and may be higher than the actual application rate.
- transparency. The WTO must post the tariff rate for members.
- Safety valve. The WTO Agreement will increase the tariffs for member states to solve unfair trade practices and allow the domestic industry to adapt to the rapid surge in income in some situations.
Since the establishment of GATT in 1947 and the WTO in 1995, global tariffs have fallen to the trade and US export markets (Figure 1). Since the establishment of the WTO, export value of US products has increased by more than 160% adjusted for inflation.
Figure.
US tariff policy
Who makes our tariff policy?
The Constitution gives the Congress the authority to collect and collect the parliament and to regulate commerce with foreign countries. Duty is no longer a major factor in domestic tax policy, so it has become a means of promoting US foreign policy and trade. Congress, thus, cooperates with the president to establish a tariff policy by often negotiating a trade agreement and approving tariffs in a particular situation.
Presidential Trade Promotion Authority (TPA). Prior to the 1930s, the Congress generally set the tariff rate legislative. US exports declined as the US and global tariffs increased during the Great Depression. The council responded by approving the president to negotiate the mutual trade agreement and to proclaim tariff reduction until the pre -setting boundary. Thus such an agreement can be fermented without any further parliamentary action. But until late
In the 1960s, non -trade barriers (eg discriminatory technical standards) were more focused on trade negotiations. As a result, it is difficult to predict the contents of the negotiations and to approve the existing US law change by declaration before the negotiations are made. The parliament solved this problem by establishing a prompt procedure to enact a legislation on the trade agreement dealing with the Vita Leaf barrier in 1974. According to this procedure, known as TPA (Trade Promotion Authority), Congress establishes US trade negotiations, consultation and notification requirements. If the president meets these goals and requirements, if the law on the contract can be quickly treated, including “stomach or down voting” without modification. The most recent TPA, a double Papatsen Trade Priority and Responsibility in 2015, expired in the summer of 2021.
President’s discretion on tariff rates. In dozens of laws and regulations, the Congress has given the president’s authority to adjust the tariff rate or to investigate the administrative investigation of US institutions according to the issue of specific trade related to US foreign policy and national security interests. For example, Article 232 of the Trade expansion Act in 1962 enables the president to adjust the tariffs on imports that threaten to damage US national security. Paragraph 5 (B) with the International Emergency Economic PowerS Act 5 (B) provides power to the president to a war or national emergency to regulate income. In 1974, Article 201 of the Trade Act gives the president to temporarily raise the tariff when the US International Trade Commission (ITC) has caused serious injuries in the US industry due to a sudden increase in imports. The Congress also empowered the US to impose an obligation to offset certain harmful trade practices.
How is the US tariff policy managed?
The Treasury Minister was accused of establishing regulations on tariffs, US tariffs and border protection (CBPs).
When the product enters the US entry parent, the product is classified and the tariff is evaluated using the harmonious tariff schedule (HTSU) of the United States, the overview of the tariff rate based on the nominal name method worldwide. Today, importers declare their own products and declare their value or quantity. The CBP reviews documents, sometimes audits, and collects applicable tariffs or punishment and administrative costs. Finally, the CBP deposits income from tariffs or other punishment to US general funds.
What is the US tariff policy?
In the last 70 years, tariffs have never accounted for more than 2% of total federal income. For example, in FY2024, CBP collected $ 77 billion in tariffs, accounting for about 1.57%of total federal income. Instead, the United States generally used tariff policies to encourage world trade liberalization and pursue extensive foreign policy goals.
Since 1934, the United States has eliminated much tariffs as part of both multilateral and multilateral trade agreements. The US Congress supported the establishment of GATT and WTOs, reducing the tariff rates worldwide within the rules -based trading system. About 70%of all products enter the US tax exemption.
The decrease in tariffs in the United States has not always inspired others. During the most recent WTO trade negotiations, the United States tried not to be convinced of advanced emerging economies such as China, India and Brazil. This dispute was probably one of the reasons why Doha negotiations could not be signed.
The low US tariff rate also served as a tool to achieve other foreign policy goals. For example, in order to encourage global economic development, Congress has created a generalized preference (GSP), which gives the president to provide unilateral duty -free treatment to some products in some developing countries. The United States also pursued the FTA as part of a wide range of foreign policy and security goals.
Parliament
The parliament has been delegated to the president for more than 80 years, and the president has been delegated to the president who is more isolated from the pressure of domestic protection countries than the individual members of the parliament. The delegation has decreased overall tariffs around the world. But this meant that the pursuit of a global trading system based on the US low -politics and rules was the product of the discretion of the administration. The parliament set a negotiation goal, but depended on the president leadership to achieve that goal.
The first Trump administration was publicly critical of the reservoir policy and used extensively the authorities delegated to the president to increase tariffs on certain products. As a result, the obligation to pay for US imports has doubled from 2015 to FY2020 to FY2020, doubling from about $ 37 billion to $ 74 billion. Biden Administration maintained many policies that CBP collected $ 77 billion in FY2024. Some members have supported the increase in tariffs. But others expressed concern about the economic impact of the increase in tariffs. Some members and committees also expressed concern about the president’s tariffs without the approval of the parliament.
Christopher A. Casey, international trade and financial analysts,,, Parliamentary research service
