It is argued by some people that government should imposed high tax on imports goods in order to boom local industries. While this approach may bring short term advantages, I believe it should be applied carefully and not to use main long-term strategy.
On the one hand, high taxation can help protect local business form foreign competition. In developing countries, small industries often cannot compete with large international companies that produce products at a lower cost. By increasing tariffs on imported goods, the government can give local producers better opportunity to grow and improve their production. This lead to job creation, technological development and stronger national economy. For example, countries like south Korea and China use many policies to provide support local business. Moreover, when local industries grow, a country becomes less dependent on imports. This can help reduce trade deficits and make economy more stable in the long run. In the times of international pandemic such as covid’19 self-reliant economy survives more easily.
On the other hand, there are some drawbacks of implementation high tax on imported commodities. They can make imported goods more expensive for consumers especially items that are not produce locally. This may lead to higher living cost and create dissatisfaction among the public. In addition, local companies may not feel the pressure to improve quality or reduce prices if they are protected from global competition for too long. This can result in low-quality goods and slow innovation.
In conclusion, while high tariffs can help grow local industries in developing nations, they should be used with caution and combined with other policies for sustainable development.