Close Navigation
Learn more about IBKR accounts

Tariff-Rate Quota (TRQ)

Trading Term

A tariff-rate quota (TRQ) is a trade policy tool that allows a set quantity of a specific good to be imported at a reduced tariff rate, while quantities exceeding the quota are subject to a higher tariff. This system aims to balance the protection of domestic industries with the benefits of international trade. For example, a country might permit the import of 10,000‍ tons of sugar at a 5%‍ tariff, with any additional imports facing a 20%‍ tariff. TRQs can help stabilize domestic markets by controlling the volume of imports and preventing market saturation.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.