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A tariff is a tax imposed on introduced goods. Tariffs can be used to defend domestic industries from foreign competition, raise revenue for the government, or discourage the importation of certain goods.

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Tariffs can be classified into two key types: ad valorem tariffs and specific tariffs. Ad valorem tariffs are a ratio of the value of the imported goods. Specific tariffs are a fixed amount of money per unit of imported goods.

Tariffs can have a number of effects on the economy. They can raise prices for consumers, reduce the availability of goods, and lead to job losses in the import-competing sector. Tariffs can also lead to retaliation from other countries, which can further disrupt trade.

The economic effects of tariffs are complex and depend on a number of factors, such as the type of tariff, the size of the tariff, and the elasticity of demand and supply. In general, tariffs are more likely to have negative effects on the economy when they are high, when they are applied to a large number of goods, and when they are applied to goods that are essential for production or consumption.

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