Question

Huong has been saving money for a down payment on a new car. She has looked at several different makes and models. She finally located the "car of her dreams.: It turns out that her "dream car" is foreign made and quite expensive because it was taxed when it was imported into the U.S. This type of tax is called a(n)_____.

Answer 1

Huong's dream car was subjected to a tariff, which is a tax on imported goods imposed to protect domestic industries and generate revenue. This makes imported items like her car more expensive, and consumers can respond to such tariffs through various advocacy methods.

Step-by-step explanation:

The type of tax Huong's dream car is subject to when it was imported into the U.S. is called a tariff. Tariffs are taxes on imported goods that governments levy to generate revenue and protect domestic industries by making foreign products more expensive. An example of such a tariff was implemented in September 2009, which was a tax on tires imported from China that increased in price substantially over a three-year period.

These tariffs can impact consumers like Huong, who may find their dream car to be more expensive due to the additional costs of importing. In some cases, consumers and businesses might voice their opinions on such tariffs, potentially through writing to representatives, senators, or by launching social media campaigns to influence trade policies.