[This is part of the series: The Complete Guide To Economics 101.]
What is a tariff?
In economics, a tariff is essentially a type of tax.
It is a tax on goods that are produced in a market abroad and sold in a domestic market.
In short, they are taxes on imports.
- There might be a 5% tax on foreign cars sold in the USA.
- There might be a 10% tax on imported cotton sold in China.
- And there might be a tax on textiles imported and sold in Russia.