Suppose an Italian shoe manufacturer wants to sell a pair of shoes to a U.S. customer, but the U.S. government adds a 10% tax on the price of the pair of shoes at the U.S. border. This is an example of

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This is an example of an ad valorem tariff, which is a tax imposed on goods based on their value. In this case, the 10% tax added by the U.S. government on the price of the shoes at the border is calculated as a percentage of their value, which is characteristic of an ad valorem tariff.

Suppose an Italian Shoe Manufacturer Wants to Sell a Pair