Tariffs

Definition

Tariffs are taxes imposed on imported goods by governments. They are designed to protect domestic industries by making imported goods more expensive compared to domestically produced goods.

Related terms

Protectionism: Protectionism refers to government policies and actions that restrict international trade with the aim of protecting domestic industries from foreign competition.

Trade Deficit: Trade deficit occurs when a country imports more goods and services than it exports, resulting in negative balance of trade.

Free Trade Agreement (FTA): A free trade agreement is an agreement between two or more countries that eliminates or reduces barriers such as tariffs and quotas on traded goods and services.