Tariffs

Definition

Tariffs are taxes imposed on imported goods, making them more expensive for consumers. They are used to protect domestic industries and can lead to trade wars between countries.

Related terms

Protectionism: Protectionism refers to government policies that restrict international trade in order to protect domestic industries.

Trade deficit: A trade deficit occurs when a country imports more goods than it exports, resulting in a negative balance of trade.

Free trade: Free trade is the unrestricted flow of goods and services between countries without tariffs or other barriers.