Question

Define Tariffs.

Hint:

A tariff is a tax imposed on imported goods.

Answer 1

Step 1: Know the meaning of the term:
A tariff is a tax. It is not a payment for any service the government gives in return.
Governments use it in foreign trade to make imported goods costlier than home made goods.

Step 2: State the definition:
Tariffs are taxes imposed on imported goods.
Because the tax raises the price of the imported good in the home market, it protects home producers.

Final Answer:
Tariffs are taxes which are imposed on imported goods.