What is a 'Tariff'?

A tariff is a tax imposed by one country on the goods and services imported from another country. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Tariff A tariff is a tax imposed by one country on the goods and services imported from another country. Read More » Related to "Tariff" The Basics of Tariffs And Trade Barriers Everything you need to know about trade barriers and tariffs, why they are used and their effects on the local economy. Read More » What are Common Reasons for Governments to Implement Tariffs? Gain a basic understanding of a government-sanctioned import tariff, what it is meant to accomplish and common reasons for implementation. Read More » A Brief History of International Trade Agreements Since the mercantilist era, world trade has become increasingly multilateral, but since World War II there has been a definite rise in regional trade agreements. Read More » Related Definitions Ad Valorem Tax An ad valorem tax is a tax derived from the value of real estate or personal property. Read More » Trade War A trade war—a side effect of protectionism—happens when country A raises tariffs on country B's imports in retaliation for them raising tariffs on country A's imports. This continuing cycle of increased tariffs may lead to injuring the businesses and consumers of the involved nations, as the prices of goods increase due to increased import costs. Read More » Mercantilism Mercantilism was the primary economic system of trade between the 16th and the 18th centuries with theorists believing that the amount of wealth in the world was static. Read More » Comparative Advantage Comparative advantage refers to an economy's ability to produce goods and services at a lower opportunity cost than trade partners. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy