In the 2020 Budget Speech, the National Treasury announced that the import tariff will decrease from 5.37% in 2019 to 4.40% in 2020, a 0.97% decline. What is the aim of the import tariffs and what does this imply to the domestic firm’s production?

Question

Accepted Answer

an import tariff is used to protect domestic firms, a 0.97% decline in import tariff will discourage domestic production and make imported products cheaper.

Answer

an import tariff is used to protect foreign firms, a 0.97% decline in import tariff will encourage foreign firms to produce more for export to SA.

Answer

an import tariff is used to protect domestic firms, a 0.97% decline in imports is too small to have an impact on the domestic firm’s production.

Answer

an import tariff is used to protect domestic firms from trade exploitation, a 0.97% decline in imports will make imported goods more expensive for domestic firms.

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In the 2020 Budget Speech, the National Treasury announced that the import tarif...

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