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LSDefine
Simple English definitions for legal terms
tariff
Read a random definition: franchise tax
A quick definition of tariff:
A tariff is a tax that a country charges when goods are brought in from another country. It's like a fee that the government collects to protect local businesses and industries. In the past, many countries used tariffs to limit trade with other countries, but now most countries try to promote free trade. The U.S. Customs and Border Protection is the organization that decides how much tariff should be charged for different goods that are imported into the United States.
A more thorough explanation:
A tariff is a tax that a government imposes on goods that are imported into a country. This tax is usually a percentage of the value of the goods being imported. The purpose of a tariff is to make imported goods more expensive, which can help protect domestic industries from foreign competition.
For example, let's say that the United States imposes a 10% tariff on all imported steel. If a company in China wants to sell steel to a company in the United States, they will have to pay an extra 10% tax on the value of the steel. This makes the steel more expensive for the American company, which may make it more cost-effective for them to buy steel from a domestic supplier instead.
Tariffs can be controversial because they can lead to higher prices for consumers and can also lead to trade disputes between countries. However, some argue that they are necessary to protect domestic industries and jobs.