Tariff

A tariff is a tax on goods imported from another country. In simple terms, a tariff makes foreign products more expensive when they enter a country. Tariffs are important because they can protect domestic businesses, raise government revenue, and influence trade between countries. However, tariffs can also raise prices for consumers and lead to trade disputes. For example, if a country puts a 10% tariff on imported steel, companies that buy foreign steel may have to pay more for it. A tariff is not the same as a quota. A tariff adds a tax to imports, while a quota limits how much of a product can be imported.