Understanding Tariffs and Their Role in Global Trade

A tariff is a tax imposed by a government on goods imported from other countries. Tariffs are typically used to protect domestic industries, respond to unfair trade practices, or generate government revenue.

Types of Tariffs

• Ad Valorem Tariffs: A percentage of the value of the imported good.
• Specific Tariffs: A fixed fee based on quantity (e.g., per kilogram or liter).
• Compound Tariffs: A combination of both ad valorem and specific tariffs.

Why Governments Use Tariffs

• To protect domestic jobs and industries
• To retaliate against unfair trade practices
• To reduce trade deficits

For example, the United States imposes tariffs on a wide range of goods based on the Harmonized Tariff Schedule (HTS), maintained by the U.S. International Trade Commission.

Learn more: U.S. International Trade Commission – Tariff Affairs