Tariff
Definition of 'Tariff'A tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. They are one of several tools available to shape trade policy. |
|
Investopedia explains 'Tariff'Governments may impose tariffs to raise revenue or to protect domestic industries from foreign competition, since consumers will generally purchase cheaper foreign produced goods. Tariffs can lead to less efficient domestic industries, and can lead to trade wars as exporting countries reciprocate with their own tariffs on imported goods. Organizations such as the WTO exist to combat the use of egregious tariffs. |
Related Definitions
Articles Of Interest
-
Tablets To 1040s: How Taxes Began
Ever dream of a world without tax? It existed - 3,000 years ago. -
5 Economic Effects Of Country Liberalization
Liberalization provides new opportunities for diversification and profit. -
The President's Council Of Economic Advisers
We'll look at the history of the Council, describe its functions and explore some of its most important decisions. -
The Basics Of Tariffs And Trade Barriers
Everything you need to know - from the different types of tariffs to their effects on the local economy. -
Hamburger Economics: The Big Mac Index
In theory, PPP stands up much better than it does in reality. Find out how to evaluate currencies according to the price of a Big Mac. -
How Influential Economists Changed Our History
Find out how these five groundbreaking thinkers laid our financial foundations. -
A Concise History Of Changes In U.S. Tax Law
We look at how U.S. taxes have changed since their inception. -
Do Cheap Imported Goods Cost Americans Jobs?
Flooding the market with cheap products can mean job losses and even market collapse - but dumping isn't as threatening as it seems. -
Adam Smith And "The Wealth Of Nations"
Adam Smith's 1776 classic may have had the largest global impact on economic thought. -
What Is The World Trade Organization?
The WTO sets the global rules of trade. But what exactly does it do and why do so many oppose it?
Free Annual Reports