Customs duties are taxes imposed on imported goods and services. Historically, tariffs were the main sources of many countries, and often the main sources of federal income until the late 19th century. Today, other taxes account for most government income in developed countries. Credzzles are usually selectively used to protect specific domestic industries, protect the advanced goals of foreign policy, and negotiate leverage for trade negotiations.
The U.S. Constitution supports Congress to configure imported duties partially delegated to the president. The United States is also a member of the World Trade Organization (WTO) and many trade agreements, including certain tariff -related commitments. Thus, Congress and President will create US tariff policies in the context of the Global Trading System based on the rules.
Rule -based global trading system
The rule -based global trading system was established after World War II. It began as a general contract (GATT) on tariffs and trade, and later integrated into a larger contract to establish a WTO. The system aims to reduce trade barriers and prevent trade war by establishing rules for the use of tariffs. The following is the following in the Core Rules on tariffs on this system.
- Demonstration. Under the rules of the most preferable countries (MFN), the country needs to extend trade concessions, such as a decrease in tariff rates to one member to all other WTO members. There are exceptions, such as the priority rate of the Free Trade Agreement (FTA), the special treatment of developing countries, and the relief to deal with specific unfair trading practices.
- Binding commitment. Through multilateral negotiations, the countries will connect themselves to the ceiling of tariff fees for certain imports. The ceiling is called a bounce rate and may be higher than the actual applicable rate.
- Transparency。 The WTO requires members to open and report the tariff fees.
- Safety valve. The WTO contract allows members to raise tariffs to deal with unfair trade practices, so that domestic industries can adapt to the sudden increase in imports depending on the situation.
After the establishment of GATT and WTO in 1995 in 1947, global tariffs have declined, spurning trade and opening markets for exports in the United States (Figure 1). Since the establishment of the WTO, the value of exports of US products has been adjusted by more than 160 % for inflation.
Figure 1. Heavy average applicable tariff rate
US tariff policy
Who is making a tariff policy for us?
The Constitution has the authority to have a duty, collect, and regulate business transactions with foreign countries. Since tariffs are no longer a major element of domestic tax policy, it has been a means of promoting US foreign policy and trade. Therefore, parliament often cooperates with the President to allow the President to negotiate a trade agreement and allow tariffs in specific situations.
Presidential Trade Promotion Bureau (TPA). Before the 1930s, Congress usually set up tariff fees under legislation. U.S. exports decreased as the US and the world’s tariffs rose during the PRESSION. Congress has responded by negotiating the President a mutual trade agreement and permitting the declaration of tariff reduction up to the preliminary boundary. Therefore, such a contract may be implemented without parliamentary action. However, by recently
In the 1960s, non -trade barriers (such as discriminatory technical standards) became a greater focus on trade negotiations. As a result, it became difficult to predict the content of the negotiations and allow the existing US law to change the existing US law before the negotiations were made. Congress has established a prompt procedure in 1974 to address this issue and implement a trade agreement law that deals with non -disability. Currently, the Congress, which is currently known as the Trade Promotion Bureau (TPA), will establish US trade negotiations and discussions and notification requirements. If the president meets these purposes and requirements, implementing a law for a contract may be promptly treated, including “rise or fall voting” without correction. The latest TPA, the comprehensive trade priority and explanation law of the 2015 bipartisan, has expired in the summer of 2021.
President’s discretionary right to tariff rate. In the dozens of laws, Congress is a specific trade -related that responds to specific trade concerns related to US foreign policy and national security, or requires administrative findings by US institutions. We allowed the president to adjust the tariff fee according to concerns. For example, the Section 232 of the 1962 Trade Expansion Law supports the President to adjust the customs duties that may impair US national security. Section 5 (B) of transactions with enemies and Section 203 of the International Emergency Emergency Economic Law will help the President in the era of war or state emergency to regulate imports. In the 1974 Trade Law section 201, if the US International Trade Commission (ITC) determined that the sudden increase in imports had caused severe injuries in US industries, the president would be a temporary tax rate. I’ll do it. Congress has also granted the authority of US institutions to offset specific harmful trade practices.
How is the US tariff policy managed?
The Secretary of Finance has been accused of establishing a regulation on tariffs and US tax protection (CBP), and has managed these regulations at the US port port.
When the goods enter the US port in the United States, the products are classified, and the rates are evaluated by using a harmonious tariff schedule (HTSUS) in the United States, which is the most common customs fee based on the global naming law. Today, importers self -classify and declare the value or amount of the product. CBP reviews documents, occasionally audit, and collects the relevant tariffs or penalties and management fees. Finally, the CBP deposits the income from tariffs or other fines in the United States General Fund.
What was the US tariff policy?
In the past 70 years, tariffs have never considered more than 2 % of the federal government’s total income. For example, in FY20124, CBP collected $ 77 billion of tariffs and accounted for about 1.57 % of the total income of federal income. Instead, the United States generally uses tariff policies to encourage global trade liberalization and pursue a widespread foreign policy target.
Since 1934, the United States has reduced or excluded many tariffs as part of the two countries and multilateral trade agreements. With the support of the creation of GATT and WTOs, the US Congress tried to globally lower the tariff rate in the rules -based trading system. About 70 % of all products are in the United States.
The US, which is a tariff fee, does not always encourage others to follow. During the latest (Doha) rounds of WTO trade negotiations, the United States has tried to convince advanced emerging economic countries such as China, India, and Brazil to reduce the binding tariff rate. This controversy was definitely one of the reasons for Dorha’s negotiations could not create an agreement.
The US tariff rate also functions as a means to achieve other foreign policy goals. For example, in order to encourage global economic development, Congress has created a generalized system (GSP). This allows the President to treat one -sided tax exemption in some products in some developing countries. The United States is also pursuing FTA as part of a widespread foreign policy and security target.
Parliamentary problem
For more than 80 years, Congress has delegated the President to President, which is more isolated from protectionist pressure in Japan, rather than individual members of Congress. This representative has led to overall decrease in global duty rates. However, it means that the pursuit of a global trading system based on the US low -functional rule is the product of execution discretion. Congress has set up negotiations, but depends on the president’s leadership to achieve those goals.
The first Trump administration has been publicly critical of low -wage policies and has widely used authorities delegated to the president to increase the customs duties of specific products. As a result, the duty paid for the US import was about $ 37 billion to $ 74 billion from 2015 to FY2020. The Biden administration has maintained many of these policies, and CBP collected $ 77 billion in 2024. Some members support the increase in tariff use. However, others have expressed concern about the economic impact of raising duties. Some members and committees have expressed concern about raising tariffs without the approval of Congress.
Christopher A. Casey, international trade and financial analysts,, Congress Research Service
