Tariff

Economics

A tariff is a tax imposed on imported goods, typically as a percentage of the import's value. Purposes: raise government revenue (historically the main source pre-income tax), protect domestic industries from foreign competition, retaliate against trading partners. Most economists oppose tariffs on efficiency grounds — they raise consumer prices and invite retaliation. The Trump administration imposed major tariffs on Chinese imports starting 2018; Biden largely maintained them. Smoot-Hawley Tariff Act (1930) is famously blamed for worsening the Great Depression. Modern WTO framework constrains tariff escalation. Tariff costs are typically borne by consumers and importers, not foreign exporters (despite political claims otherwise).