What is a tariff?

What is a tariff?

• A. A tax on imported goods
• B. A tax on sales of goods inside the country
• C. A tax on property
• D. A tax refunded to exporters

Answer: (A)

A tariff is a tax on imported goods. It’s charged by a country at the border, so imported products become more expensive relative to domestically produced ones. This can raise revenue for the government and also protect domestic industries by reducing foreign competition. The other descriptions refer to different kinds of taxes: a tax on sales inside the country is a sales tax, a tax on property is property tax, and a tax refunded to exporters would be an export subsidy or rebate, not a tariff.

A tariff is a tax on imported goods. It’s charged by a country at the border, so imported products become more expensive relative to domestically produced ones. This can raise revenue for the government and also protect domestic industries by reducing foreign competition. The other descriptions refer to different kinds of taxes: a tax on sales inside the country is a sales tax, a tax on property is property tax, and a tax refunded to exporters would be an export subsidy or rebate, not a tariff.