Tariff

A tariff is a tax that a country imposes on imported goods. Its purpose is to make these foreign products more expensive, encouraging consumers to buy domestically produced items. Governments use tariffs to protect local industries, generate revenue, or influence trade balances. When a tariff is applied, importers must pay the tax, which can lead to higher prices for consumers and may also impact international trade relationships. Overall, tariffs are a tool that governments use to regulate trade and support economic policies.