What Are Tariffs?

Tariffs are taxes or duties imposed by a government on imported goods and services. They are typically used to protect domestic industries by making foreign products more expensive, thereby encouraging consumers to buy locally produced goods. Tariffs can also generate revenue for the government. They vary depending on the type of product, its origin, and the trade agreements between countries. While tariffs can support national economies, they may also lead to higher prices for consumers and potential trade disputes between countries. Governments may use tariffs as a tool in trade negotiations or to address unfair trade practices.