A tariff is a tax on imported goods at the border before they are allowed in to give revenue to the government. The government then uses the income in the maintenance of port facilities and many more. Tariffs also aim to protect local industries and products produced in the country. Tariff is thus an effort to regulate the passage of goods at the border, the fee is paid based on the value of assets that one has. Most people would, therefore, prefer buying goods produced from within to evade paying extra money as the tariff in the form of tax which would make the product more expensive compared to when one buys a local product. The government then aims to protect its country’s businesses by taxing its competitors. Tariffs are also imposed by the government to help protect areas that are important to the state. For example, imposing duties on agricultural products to promote its farmers. Tariffs can also be used by the government to achieve its foreign policy goals.

Imposing tariffs by the government helps protect local industries from foreign industries. It ensures that local industries maintain a profitable advantage over foreign industries. Through this, tariffs benefit local productions at the expense of non-local industries. Imposing high tariffs help protect domestic industries from competition offered by international industries that produce similar products. This move allows local industries to grow and protect them from being overrun by more advanced foreign industries. However, tariffs hinder the development of non-local industries by preventing free trade between different nations. Choosing to buy a locally produced and less expensive good disadvantages foreign industries. The growth of specific industries is then limited when these tariffs are imposed on their goods.

Harley Davison leaving the US as its primary home base is a significant loss to the US and feels like deprived off something essential. Harley Davison leaving the US as its home base means more jobs are lost by the people increasing the number of unemployed people. People are then forced to take up jobs that are less beneficial to them and the country. There is also a reduction of its activities in the US meaning the government and the US people will not have much benefits from it as before. Notable is the reduction in the amount of tax initially received by the government as tariffs are charged depending on the value of goods that a company wants to import or export. The government then faces losing its tax base when a big company like Harley Davison shifts its home base to another country.

An increase in timber prices will mean an increase in the cost of home construction. High tariffs imposed on lumber has significantly led to a rise in lumber prices. As a result, there is an increase in the cost of timber imported from Canada. Companies involved in the production of houses using wood thus use more money than before, a move that has affected the affordability of houses. Taxing of lumber leads to an automatic increase in the cost of home production. An increase in the prices of current built homes will to some extent lead to the renegotiation of the prices of existing homes. Lumber price increase then creates a problem as owners of existing houses will have to review the current market price for houses thus will increase the rates of existing homes.

 
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