$ETH A tariff is a tax imposed by a government on imported or exported goods. Its main purpose is to protect domestic industries from foreign competition by making imported products more expensive. Tariffs can also generate revenue for the government. There are different types of tariffs, such as specific tariffs (fixed fees per unit) and ad valorem tariffs (based on a percentage of the item's value). While tariffs can support local businesses and jobs, they may also lead to higher prices for consumers and strained international trade relationships. In today's global economy, tariff policies significantly impact economic growth and international relations.