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by mk89 437 days ago
To allow free trade of certain goods which your country needs more.

This is why tariffs are much more flexible, because they allow you to, let's say, trade oil at a cheaper price, while pasta (widely produced in europe) at a higher price.

4 comments

So what you are suggesting is a reverse tariff? Punish local producers for manufacturing goods that we’d rather import.

Well.. that’s an idea.. I suppose..

Then you would just not tax those goods. We already do this with basic foodstuffs; this has nothing to do with tariffs.
VAT doesn't affect free trade in any way though. You're mixing up unrelated concepts.
VAT is never universal, different products already get different rates.