What is a tariff?

A tariff is defined as an official schedule of taxes and fees imposed by a government on imports or exports. This financial charge is designed to regulate international trade, influence domestic markets, and protect local industries from foreign competition. When goods are imported into or exported out of a country, tariffs can significantly affect pricing, thereby impacting trade decisions made by businesses.

Tariffs serve to generate revenue for the government and can also be used as a trade policy tool to encourage or discourage the importation of specific goods. For example, higher tariffs on imported products can make domestic alternatives more attractive to consumers.

In contrast, other options do not accurately capture the meaning of a tariff. The inventory tracking document relates to warehouse and supply chain management, while shipping documentation generally refers to various forms required for the transportation of goods. A logistics strategy, on the other hand, encompasses broader planning aspects for managing supply chains rather than specifically relating to tax or fee structures on traded goods.