Tariffs

Tariffs are government-imposed taxes or duties that are levied on goods and services imported into a country. They serve multiple purposes, including protecting domestic industries from foreign competition, generating revenue for the government, and influencing trade policies. Tariffs can be specific, meaning they are a fixed fee per unit of a good, or ad valorem, which is a percentage of the value of the imported item. By increasing the cost of imported goods, tariffs can make domestic products more competitively priced, thus encouraging consumers to buy locally produced items. Conversely, tariffs can lead to trade tensions between countries and can impact international relations and agreements.