Tariffs are bad. They are distortionary, counterproductive, and welfare reducing. Anyone who has taken Economics 101 knows this. Yet, in Brazil, tariffs (taxes on goods imported from other countries) are incredibly commonplace, particularly on electronics.
About a week ago, the powercord on my Mac stopped working. In the United States, this would be a problem with a quick solution -- drive to the closest Apple store and trade in the old powercord for a new one. Alas, in Brazil, things are not so simple. The closest available Mac powercord is a two hour drive away and upwards of $200; all thanks to some of the highest tariffs on electronics in the world. If you are a Brazilian who wants to buy an Ipad you'll be paying around a thousand US. Costs for electronics typically run double to triple what they would be in the US. A problem that should have been a minor speedbump has become a major headache. For now, I'm borrowing a computer from a friend and still hoping to breathe some life back into my dead powercord. Highly unlikely.
For more on why these ridiculously high tariffs are counterproductive.
http://www.forbes.com/2010/11/03/apple-steve-jobs-technology-brazil.html
All I want is June 15th :-)
ReplyDelete