Okuzeka
Economics vocabulary · Trade and Exchange Rates

Tariff

Meaning in economics, with examples

/ˈtærɪf/nounCore term

In economics, tariff means: A tax that a government charges on goods when they are imported, which makes foreign products more expensive compared with local ones.

In Turkish: gümrük vergisi, gümrük tarifesi

How it is used

Governments impose, raise, cut or lift tariffs on a product; if a trading partner retaliates with its own tariffs, a trade war can follow. Tariffs are the main tool of protectionism. In British English, tariff can also mean a price plan, such as an energy tariff.

Example sentences

  1. The government imposed a 20% tariff on imported steel.

  2. Tariffs are often passed on to consumers in the form of higher prices.

Common collocations

  • impose a tariff on
  • lift tariffs
  • tariff barriers
  • retaliatory tariffs
  • tariff rates
  • protectionismPolicies that shield domestic producers from foreign competition, for example through tariffs, import quotas or subsidies.
  • free tradeInternational trade with few or no barriers such as tariffs, quotas or subsidies, so that goods and services move freely between countries.
  • importA good or service bought from producers in another country; as a verb, to bring goods or services in from abroad.
  • exportA good or service sold to buyers in another country; as a verb, to sell goods or services abroad.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Trade and Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.