Quick Definition

A tariff is a tax imposed by a government on goods and services imported from other countries, used to restrict trade, raise government revenue, or protect domestic industries.

Examples

• 1A government imposes a 10% tariff on imported automobiles to protect its domestic car manufacturing industry.
• 2A country levies a 25% tariff on imported steel to encourage the use of domestically produced steel and support local steel mills.
• 3During a trade dispute, a nation might increase tariffs on specific goods like agricultural products to exert economic pressure on the trading partner.

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