In recent years, there has been considering debate regarding many growing nations should impose higher tax to protect the local businesses. While there are many arguments in the favor of this topic. however, according to my perspective, I am partially agree with this approach because have some benefits and as well as occurring some risks.
On the first hand, high tariffs give temporary relief to local industries in developing countries, apply higher duty on imported goods, somehow it is protected the local business from international competition. Through that, they can easily create more opportunities like jobs, companies, improve the technology and productivity without the threat of foreign markets. For example, in past India used high tariffs to extend textile and automotive industries and supporting local employments and organizations.
On the other hand, if a developing nations raises duty, it is lead the trade wars between two countries due to big harm on exports on imports reduce the market access for local companies. For example, during United state and Chine trade war, both countries set the higher taxes on each other goods, leading to disruptions in globe supply chains and higher costs of items for both sides. Lastly, if countries apply excessive toll on imported products, it is becoming very hard for consumers to buy essentials things, as many people struggling on low wage and unemployment.
To conclude, high tariffs can offers short terms benefits for developing countries. I believe that this phenomenon has to make good balance to protect the emerging industries with efforts to increase global competitiveness as well as they have to take care of other factors such as consumers.