Tariffs are taxes imposed on imported goods and services, making them more expensive for consumers. They are used to protect domestic industries by increasing the price of foreign products.
Related terms
Free trade: The policy of allowing goods and services to be traded between countries without restrictions or tariffs.
Protectionism: The economic policy of shielding domestic industries from foreign competition through measures such as tariffs.
Trade deficit: When a country imports more goods and services than it exports, resulting in an imbalance in trade.