Trade Tariffs

Trade tariffs are taxes imposed by a government on imported goods and services. They are used primarily to regulate trade between countries, protect domestic industries from foreign competition, and generate revenue for the government. By increasing the cost of imported goods, tariffs can make domestic products more price-competitive. There are different types of tariffs, including specific tariffs, which set a fixed fee per unit of the imported good, and ad valorem tariffs, which are based on the value of the imported goods. Tariffs can influence trade balances, economic relationships between countries, and consumer prices. While they can benefit local producers by restricting foreign competition, tariffs can also lead to higher prices for consumers and potential retaliatory measures from trade partners.