Tariffs

Tariffs are taxes imposed by a government on imported or exported goods. They are used to regulate trade, protect domestic industries, and generate Revenue. Tariffs can be specific (a fixed fee per unit) or ad valorem (a percentage of the value of the goods).

Examples:

• Import Tariff: A country may impose a 20% tariff on imported steel to protect its domestic steel industry from foreign competition.
• Export Tariff: Some countries levy tariffs on exports of raw materials to ensure that local industries have sufficient access to these resources.

Cases:

• U.S.-China Trade War: In 2018, the U.S. imposed tariffs on $250 billion worth of Chinese goods, leading to retaliatory tariffs from China.
• European Union Tariffs: The EU has tariffs on agricultural products to protect its farmers, affecting imports from countries like the U.S. and Brazil.