Tariff

A tariff is a tax or duty imposed by a government on the import or export of goods. It serves to control trade between nations, protect domestic industries, and generate revenue. Tariffs can also influence economic relations and are often a tool for achieving political objectives.

Tariff meaning with examples

• The government introduced a new tariff on imported steel to protect local manufacturers from foreign competition. By imposing this tariff, they aimed to boost the domestic industry while ensuring that consumers would pay slightly higher prices for steel products.
• During the trade negotiations, both countries discussed tariffs extensively, as changes in tariff rates could significantly affect the flow of goods across their borders. Both sides were aware that the right adjustments could either strengthen their economies or lead to increased tensions.
• The recent tariff increase on electronic gadgets surprised many consumers, who suddenly found themselves paying more for their favorite devices. This move was part of a larger strategy to encourage domestic production and reduce dependence on overseas manufacturers.
• In response to the economic downturn, the government considered implementing a temporary tariff on luxury goods. They believed that this measure would not only increase revenue but also promote the purchase of more affordable local alternatives, helping the economy recover.