import tax

A tariff is a tax imposed on imported or exported goods, essentially acting as a payment to the government for the movement of these items across borders. These taxes can make foreign goods more expensive, potentially limiting their entry into a country or encouraging domestic production.12

Tariffs are a form of state interference in international trade and can be used to protect domestic industries and jobs, or to generate revenue. However, they can also distort markets, increase costs for consumers, and lead to retaliatory measures from other countries, potentially resulting in a trade war. Historically, high tariffs have been linked to economic downturns, such as the Great Depression following the Smoot-Hawley Tariff Act of 1930.23