…[I]mports of infant formula are subject to tariff-rate quotas of 17.5 percent after certain thresholds are met. As the name suggests, tariff-rate quotas are meant to be set high enough that they effectively block additional imports by making it unprofitable to pay the tariff.
– Boehm, Eric. “America’s Trade and Regulatory Policies Have Contributed to the Baby Formula Shortage” (May 9th, 2022) Reason.com
Eric Boehm is a reporter at Reason and was a national regulatory reporter for Watchdog.org.