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Non-Monetary Tariffs

Trading Term

Non-monetary tariffs, often referred to as non-tariff barriers (NTBs), are trade restrictions that do not involve direct financial charges. These include quotas, import licenses, and standards that regulate the quality or safety of products. Unlike traditional tariffs, which impose a tax on imports, NTBs can affect the volume and type of goods entering a country. Economically, they can protect domestic industries by limiting foreign competition, but they may also lead to inefficiencies and higher prices for consumers.

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