What is a tariff?

A tariff is fundamentally a duty or tax imposed on imported goods. This levy serves various purposes, including protecting domestic industries from foreign competition, generating revenue for the government, and regulating the volume of goods entering a country. When a tariff is applied, it directly affects the cost of goods coming into a nation, making them more expensive and potentially influencing consumer choices and trade policies.

Understanding tariffs is critical in international trade, as they can affect pricing, supply chains, and international relations. The application of tariffs can vary by product and can be subject to negotiations or trade agreements, making it a vital aspect of customs operations and trade compliance.