What are Import Tariffs?
Import tariffs are taxes charged by the customs authority on the importation of goods into a country. Usually, the value of the imported goods determines the amount that will be levied on them. In some context, import tariffs also means import duties, customs duties, tariffs or import tax.
Economically, import tariffs are charged to generate revenue for the government and to protect local goods against the dominance of foreign products. However, there are other reasons for imposing taxes. One of them is to restrict foreign products from flooding the local market. Moreover, import tariffs are charged to penalise a country by means of a sanction mechanism.