A tariff is a tax a government levies on imported goods. Tariffs raise the price of imports, protect domestic industries, and generate government revenue — but they also increase consumer costs and can trigger retaliation.
What Is a Tariff? A tariff is a tax that a government imposes on goods imported from other countries. When a tariff is applied, the imported product becomes more expensive in the domestic market, making domestically produced alternatives more competitive. Tariffs are the most common and visible form of trade barrier and are a primary tool of protectionism . Key Takeaways A tariff is a tax on imports that raises the landed cost of foreign goods. Tariffs protect domestic industries, generate gover