What is a tariff?
A tariff is a tax on specified goods entering across a border.
Definition, calculation and mechanism
It can raise import costs and affect prices, domestic production and trade volume. Winners and losers depend on the good, substitutes and trading-partner responses. Government collects revenue while businesses and consumers may share costs.
Interpretation, examples and limits
Tariffs alone do not describe all barriers; quotas, standards and exchange rates matter. Protection can help some producers while raising costs for firms using imported inputs. Examine the full chain.
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