What are tariffs imposed on?

Tariffs are taxes imposed by a government on imports of goods. This is a key practice in international trade, aimed at regulating trade between countries. When a country imposes a tariff on imported goods, it increases the cost of those goods in the domestic market, which can encourage consumers to buy domestically produced items instead. This can also serve to protect local industries from foreign competition by making imported products less price-competitive.

In contrast, tariffs are not imposed on exports. Instead, export tariffs might be used in particular circumstances, but they are relatively rare. Tariffs also do not apply to all international transactions or domestic sales, as they specifically target goods crossing international borders into the importing country. Thus, the focus on imports distinctly characterizes how tariffs function in trade policy.