A tariff is a tax or duty imposed on imported or exported goods. It is typically levied by a government to protect domestic industries, raise revenue, or influence trade relationships. Tariffs can be specific, such as a fixed amount per unit of measurement, or ad valorem, which is a percentage of the value of the goods. The main purpose of tariffs is to make imported goods more expensive, thereby encouraging consumers to buy domestically-produced goods, and to raise government revenue. Tariffs can also be used as a tool in international trade negotiations and to protect domestic industries from foreign competition.
