Tariff
A tariff is a tax or duty imposed on goods when they cross a national border, most commonly on imports. Tariffs can raise government revenue, affect trade flows, or be used as part of trade policy.
A tariff is a tax or duty imposed on goods when they cross a national border, most commonly on imports. Tariffs can raise government revenue, affect trade flows, or be used as part of trade policy.
Example: An importer bringing a product into the United States may owe a tariff determined by the product’s classification and applicable trade rules.
Common misconception: The foreign government automatically pays a U.S. tariff. The tariff is generally collected from the importer, though its economic costs may be shared among importers, businesses, and consumers.
Sources: https://www.cbp.gov/trade/programs-administration/trade-remedies; https://www.usitc.gov/