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Definition of 'Tariff'

A tariff is a tax imposed on imported or exported goods. Tariffs are used by governments to protect domestic industries from foreign competition. They can also be used to raise revenue for the government.

Tariffs can have a number of effects on the economy. They can increase the cost of goods for consumers, which can lead to lower demand and lower production. Tariffs can also make it more difficult for businesses to compete in international markets.

Tariffs can be either specific or ad valorem. A specific tariff is a tax that is levied on a particular good, regardless of its value. An ad valorem tariff is a tax that is levied on a good based on its value.

Tariffs can be either unilateral or multilateral. A unilateral tariff is a tariff that is imposed by one country on imports from another country. A multilateral tariff is a tariff that is agreed to by a group of countries.

Tariffs have been used by governments for centuries. They were first used in ancient Greece and Rome. In the modern era, tariffs were used extensively by the United States during the 19th and 20th centuries.

Tariffs are a controversial topic. Some people believe that they are necessary to protect domestic industries from foreign competition. Others believe that tariffs are harmful to the economy and that they should be eliminated.

The debate over tariffs is likely to continue for many years to come.

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