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Tariff

Trading Term

shipping-tariff

A tariff is a tax imposed by a government on imported goods and services. It serves multiple purposes, such as protecting domestic industries from foreign competition, generating revenue, and sometimes as a tool for political leverage. When a tariff is applied, the cost of the imported goods increases, making them less competitive compared to locally produced items. This can lead to a shift in consumer preference towards domestic products. However, tariffs can also lead to trade disputes and may result in retaliatory measures from other countries. Understanding tariffs is crucial for comprehending global trade dynamics and economic policies.

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