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Thread: Tariffs or no Tariffs?

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    English Francophile Fire_Unionist's Avatar
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    Tariffs or no Tariffs?

    What is generally your policy? As I'm usually rolling in money, I usually just subsidize all the way. Are tariffs better?

  2. #2
    I generally prefer to max out tariffs. For some reason it makes my middle class happy.
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    Second Lieutenant Red Menace's Avatar
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    I use tariffs, I'm running on the belief it encourages my capitalists to buy their goods domestically, building me an industrial base, enriching my national economy and making me money. It goes against my free market tendencies but, I want the money now!

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    English Francophile Fire_Unionist's Avatar
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    But if money was not a problem(I'm making way too much), would you still use tariffs?

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    Colonel Scott1964's Avatar
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    I set my tariffs at -2 to-4%

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    Corporal Ranchan's Avatar
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    Max tariff with 25% tax for me. Nearly all population will get their luxury good with such setting.

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    Quote Originally Posted by Fire_Unionist View Post
    But if money was not a problem(I'm making way too much), would you still use tariffs?
    Then I would personally drop them, in theory your capitalists should build a more stable and profitable economy based on world demand and not the artificial one imposed on them through your tariffs.

  8. #8
    I think the higher tariffs help your artisans if your POPs are buying foreign the middle class artisans go broke. Same as if you sell to much from your stockpile domestically

  9. #9
    The theory would be that if your POP has to buy foreign goods, by having high tariffs, they will have a hard time buying foreign goods. By subsidizing you would be able to help them buy foreign goods.

    However, what seems to work the best is just making your RGO profitable, which makes your POPs very rich, and even at 100% tariffs they can afford even luxury goods.

    Even as a weak nation, you can make your RGO very profitable within a few years with the correct technologies. Half of your income will probably come from tariffs and your people will still be happy. If you are worried about making too much money, you can just build a huge army and navy. By taking as much money as possible, you can slow down the broken population promoting as well.

  10. #10
    at begin i also went up to -20 % tariffs, but sadly, that your own people dont actually buy everything from your nations production. ....

    Better is 100% tariffs, so that the imports as low as possible. This will make your nation as whole richer. In V2 u actually handle less the budget , but more the national (closed ) economy. In a closed system the sum remains ever the same * ( practically, except gold , blockade,... ).

    So in a closed system u can actually build an army/navy for 1M - and the whole money returns in your pocket. Factories sell more goods. Better profits -> more income for the worker -> higher income of pops -> higher tax/national bank /tariffs.

    So in a closed system u can enact all the social reforms, except better wages(seems broken), u can have 6% bureaucrats and 4% clergyman with 100% investments, ... and still make profits , but other distributed ( so tax 100% isnt actually something bad ).

    other examples. : when u subsidize a factory with 2000 money a day , but u fullfill the requirement to not import anything for it - u actually don't make deficit. U just distribute the money and it will raise the solds from the inputs and so mostly the labours will gain more income.

    Anyway other nations will never go over 5% tariff. So they bleed out . In my game actually only GB still can export some stuff. But cause of my massive overproduction some goods prices are actually quite low. and other nations industry collapses . France / USA about 300 industrial points at about 1895 , and this are the nr.3 and 4 in the world.

  11. #11
    Far as I know, everyone gets their goods on the local market first no matter what. Thus saying that high tariffs makes them get it locally first is .. well.. wrong ;P
    I think tariffs are in place to control the over promotion of POPs to rich strata, when taxes aren't enough. I havent really done the math, but i think taxes are only on salaries they make from selling their goods and tariffs are on goods they buy.

  12. #12
    Corporal
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    I have -25% tarriffs, and i tax all classes 45%. I have a very lassei economic policy, but my government is tory (uk). I only interviene to expand factorys or build railways. It seems to be working because i am spending 100% on all the public spending, and i am making +700 a day.


    Also i have just colonised north west canada, so i am NF on clerks in south east, and craftsmen in the midlands (england)

  13. #13
    Quote Originally Posted by varonel View Post
    Far as I know, everyone gets their goods on the local market first no matter what. Thus saying that high tariffs makes them get it locally first is .. well.. wrong ;P
    I also thought so, but .
    at some point my whole money starved.
    My industries hardly sold anything.

    After i raised tariffs first up to 40%, and some days later up to 100%.

    my money was raising extremely.
    And my industry goods sold better.

    market activity told me that time, trade ledger told me , max export value about 150k and import something about 8k. I still do import grain ,.. may 2 G people are too much for my only unciv/colony gains....

    try it

  14. #14
    Major Rakonas's Avatar
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    Does -100% subsidies mean that your people can get anything for 0% cost from foreign markets?

  15. #15
    Hostile native Brownbeard's Avatar
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    Use taxes only when tariffs do not do the job. Try to equalize income and spending unless gearing up for something big.
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  16. #16
    Quote Originally Posted by AlknicTeos View Post
    I also thought so, but .
    at some point my whole money starved.
    My industries hardly sold anything.

    After i raised tariffs first up to 40%, and some days later up to 100%.

    my money was raising extremely.
    And my industry goods sold better.

    market activity told me that time, trade ledger told me , max export value about 150k and import something about 8k. I still do import grain ,.. may 2 G people are too much for my only unciv/colony gains....

    try it

    Useless, 2 months later artisans can't afford to buy anything and factories in deflict is still in deflict.

  17. #17
    Pops get their goods from whichever is cheapest, so raising tariffs usually means they'll get goods from the local market. Alternately, if your country is importing a lot of goods, then lowering tariffs can make those goods cheaper, thus making your producers more effective and able to pay you more taxes...

  18. #18
    So if the main problem is over-supply then it can't be helped?

  19. #19
    Quote Originally Posted by SchwarzKatze View Post
    So if the main problem is over-supply then it can't be helped?
    You can increase demand for some things yourself. Raise more armies, especially later units like Guards etc. This will increase demand since you need to buy them for your stockpile. You can also take over manual trade and just start buying stuff up with your cash (which should then make the goods more valuable, increasing pop income, increasing tax revenue, giving you back the cash). Try to promote more craftsmen and capitalists, since they have crazy needs requirements which should increase demand (but only if your factories are doing well, otherwise they will demote).

  20. #20
    Quote Originally Posted by quetzilla View Post
    Pops get their goods from whichever is cheapest, so raising tariffs usually means they'll get goods from the local market. Alternately, if your country is importing a lot of goods, then lowering tariffs can make those goods cheaper, thus making your producers more effective and able to pay you more taxes...
    isnt the price everywhere the same ?

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