tariff

Vocabulary Word

Definition

A 'tariff' is a kind of tax that is applied to products when they are imported into a country. This raises the price of the imported goods and discourages people from buying them.

Examples in Different Contexts

Think of a tariff like an entry fee that foreign products have to pay to come and be sold in your country.

Practice Scenarios

Public-Policy

Scenario:

Considering the potential increase in our national debt, the government is considering different approaches to boosting revenue.

Response:

Yes, one option could be imposing higher tariffs on luxury goods as it'll increase government revenue without burdening essential items.

Economics

Scenario:

With the ongoing debate on protectionism, it's crucial we understand the implications on both domestic and international trade.

Response:

Indeed, while protectionism through tariffs can help local markets, it may lead to a decrease in international trade.