Definition: A tariff is a tax imposed on imported goods to protect domestic industries or raise government revenue.
Explanation
A tariff is a government-imposed tax on products imported from other countries. It increases the cost of foreign goods to encourage consumers to buy domestically produced items or to generate revenue for the government. Tariffs can affect supply chains, raise prices for consumers, and influence international trade relations. While designed to protect local industries, tariffs often lead to higher costs for businesses and consumers and can provoke retaliatory trade measures.
Example
For instance, the U.S. government imposed a 17.5% tariff on USB flash drives imported from China, increasing their cost and impacting both manufacturers and consumers who rely on these imported products.
Who This Is For
This term is important for technology manufacturers, importers, exporters, supply chain managers, policymakers, and consumers who deal with or are affected by international trade and product pricing.
Related Terms
import tax, trade barrier, customs duty, trade deficit, supply chain
Also Known As
import duty, customs tariff