A government tax on imports or exports.

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Multiple Choice

A government tax on imports or exports.

A tariff is a government tax on goods crossing borders. It’s the standard term for a tax applied to imports (and, less commonly, on exports) and is used to raise revenue or protect domestic industries by making foreign goods more expensive. The other terms refer to different concepts: standards are rules about quality or safety, subsidies are payments to domestic producers, and an exchange rate is the value of a currency relative to others. Those ideas influence trade in other ways but do not describe a tax on traded goods.

A tariff is a government tax on goods crossing borders. It’s the standard term for a tax applied to imports (and, less commonly, on exports) and is used to raise revenue or protect domestic industries by making foreign goods more expensive. The other terms refer to different concepts: standards are rules about quality or safety, subsidies are payments to domestic producers, and an exchange rate is the value of a currency relative to others. Those ideas influence trade in other ways but do not describe a tax on traded goods.

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