Tariff

/ ˈtær.ɪf / noun /

RE: BUSINESS, ECONOMY, GOODS, INTERNATIONAL TRADE, POLICY

A tariff is a tax placed on goods that come into a country from abroad. When a government adds a tariff, it increases the cost of imported products, which can make locally made goods more competitive in price. Tariffs are commonly used to protect local jobs, businesses, and industries, especially in agriculture, steel, and manufacturing.

Tariffs also play a role in global politics. One major example was the U.S.–China trade war that began in 2018, when former President Donald Trump introduced tariffs on hundreds of billions of dollars’ worth of Chinese goods. The U.S. said these tariffs were a response to unfair trade practices and intellectual property theft by China. In return, China imposed its own tariffs on American products like soybeans and cars. This back-and-forth raised tensions between the two countries and increased costs for businesses and consumers around the world.

While tariffs can help local industries in the short term, they can also lead to higher prices, supply chain disruptions, and trade conflicts. Many countries now aim to reduce tariffs through trade agreements, such as those within the World Trade Organization (WTO) or regional trade blocs like the EU or USMCA.

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