Tag: tariffs

Tariffs are taxes or duties imposed by a government on imported or exported goods. They are used to regulate trade, protect domestic industries, and generate government revenue. Tariffs can be ad valorem (a percentage of the good’s value) or specific (a fixed amount per unit). Higher tariffs make imported goods more expensive, encouraging consumers to buy local products. However, they can also lead to trade wars, increased prices, and reduced international trade. While tariffs protect domestic businesses, they may hurt consumers and global economic efficiency. Countries often negotiate tariff reductions through trade agreements to promote economic cooperation and growth.