![Economics 101: What Is A Tariff?](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2016/10/1-10.jpg?fit=636%2C423&ssl=1)
[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.
For example:
- 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.