What term is used for taxes on imported goods?

What term is used for taxes on imported goods?

• A. Tariffs
• B. Quota
• C. Subsidy
• D. Trade Wars

Answer: (A)

Tariffs are taxes imposed on goods imported from abroad, collected at the border. By raising the price of imports, tariffs make domestic products relatively cheaper and can protect local industries while generating government revenue. The other terms describe different ideas: a quota is a limit on the quantity that can be imported, a subsidy is a payment to domestic producers, and trade wars describe broader conflicts of trade barriers between countries rather than a single tax on imports.

Tariffs are taxes imposed on goods imported from abroad, collected at the border. By raising the price of imports, tariffs make domestic products relatively cheaper and can protect local industries while generating government revenue. The other terms describe different ideas: a quota is a limit on the quantity that can be imported, a subsidy is a payment to domestic producers, and trade wars describe broader conflicts of trade barriers between countries rather than a single tax on imports.