A tariff is the policy schedule that says how much border tax applies to each type of good. Governments use tariffs to collect revenue, shield domestic industries, or bargain in trade talks. The duty you pay is the tariff applied to your shipment.
Key takeaways
- Ad valorem tariffs are percentages of value; specific tariffs are fixed amounts per unit.
- Higher tariffs tend to raise local prices of the taxed imports and can invite retaliation.
- Tariff books are organised by standardised product codes for classification.
- Exemptions and free-trade preferences create different effective rates for the same goods.