Tariffs
Definition
Tariffs are taxes imposed on imported goods, making them more expensive for consumers. They are used to protect domestic industries and can lead to trade wars between countries.
Analogy
Imagine you're at a party where everyone brings their own snacks. The host decides to charge a fee for any snacks brought from outside the party. This fee is like a tariff because it makes those snacks more expensive compared to the ones provided by the host.
Related terms
Protectionism: Protectionism refers to government policies that restrict international trade in order to protect domestic industries.
Trade deficit: A trade deficit occurs when a country imports more goods than it exports, resulting in a negative balance of trade.
Free trade: Free trade is the unrestricted flow of goods and services between countries without tariffs or other barriers.
"Tariffs" appears in:
Subjects (5)
Additional resources (1)
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