How do tariffs work?

Question

Okay, I've been trying to figure this out for months now. I know it's not that difficult of a concept, but I still don't exactly get how it works.

I know that tariffs are a tax on imported goods. So, from what I understand, the U.S. government makes the prices of products coming from abroad higher so that the products from U.S. companies are protected. If the government doesn't want people to buy stuff coming from abroad, why doesn't it just stop imports? Now, when an imported good is taxed, HOW MUCH is it taxed? (Again, I am just an idiot when it comes to this stuff.) Is an imported CD player going to be just a few dollars more expensive than one from the U.S. or something? I mean, wouldn't it have to be a hell of a lot more expensive in order to dissuade people from buying it? Also, does the U.S. buy the imported goods, and then try to sell them, or does the money we pay for the goods go straight to the foreign countries?

Answer 1

No, you're not an idiot. The tariff tax is different for different products. A tariff is simply a tax or duty placed on an imported good by a domestic government. Tariffs are usually levied as a percentage of the declared value of the good, similar to a sales tax. Unlike a sales tax, tariff rates are often different for every good and tariffs do not apply to domestically produced goods.

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