The Absolute Easiest Explanation & Truth About Tariffs |

A tariff is a tax on imported goods and services. Tariffs are a type of trade barrier that raise prices and can reduce the availability of goods and services.

Purpose
Protect domestic industries: Tariffs can help protect domestic industries from unfair competition.

Advance foreign policy: Tariffs can be used to advance foreign policy goals.

Negotiating leverage: Tariffs can be used as leverage in trade negotiations.

Raise revenue: Tariffs can be a source of revenue for governments.

Who sets tariffs?
In the United States, Congress has the power to set import tariffs, but has delegated some of this power to the President.

Tariffs vary by country and product.

How do tariffs work?
Tariffs are collected at the time of customs clearance in the foreign port.
Tariffs are sometimes lower or eliminated when there is a trade agreement between the countries involved.

History
Tariffs were a major source of revenue for many countries, especially in the late 19th century.
The United States first implemented tariffs shortly after the Constitution was ratified