tariff

play

noun tar·iff \ ˈter-əf , ˈta-rəf \

Updated on: 26 Jul 2017

Definition of tariff

1 a :a schedule of duties imposed by a government on imported or in some countries exported goods

b :a duty or rate of duty imposed in such a schedule

2 :a schedule of rates or charges of a business or a public utility

3 :price, charge

See tariff defined for English-language learners

See tariff defined for kids

Recent Examples of tariff from the Web

But others, like Dwayne Frank, 25, would feel the effects of a steel tariff first.

— the washington post, NOLA.com, "How Trump's steel plans could affect 4,000 who work at New Orleans' port," 18 Aug. 2017
But the Associated Press reports that Chinese piracy seems to be more of a reason to institute tariffs the administration already wants to carry out.

— dan sweeney, Sun-Sentinel.com, "Where's the real fake news?," 2 Aug. 2017
Separately, the Trump administration is investigating whether foreign steel threatens U.S. national security -- a probe that could lead to tariffs or quotas on those imports.

— jennifer a. dlouhy, courant.com, "Trump's America-First Pipeline Plan Draws Ire of Oil Industry," 21 July 2017
As such, the risk of President Trump imposing punitive import tariffs on Chinese steel and aluminium appears to be rising.

— alan murray, Fortune, "CEO Daily: Thursday, 20th July," 20 July 2017
Just as officials of the two nations prepare to meet Wednesday in Washington, the Trump administration is considering slapping tariffs on steel imports, a step that risks igniting a trade war.

— josh boak, The Seattle Times, "US-China trade rifts resurface even after friendly summit," 18 July 2017
NAFTA, passed in 1994, brought down import tariffs and other barriers to trade with Mexico.

— maureen groppe, Indianapolis Star, "Cummins CEO to Congress: Update, but don't end, NAFTA," 18 July 2017
These firms are still backing a 1974 Trade Act Section 201 petition for Trump to impose yet stricter temporary tariffs.

— TIME.com, "The world’s largest floating solar farm," 18 July 2017
Average tariffs between the two sides are already low.

— roger showley, sandiegouniontribune.com, "Econometer: Will trade deal between Japan-EU hurt U.S.?," 15 July 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'tariff.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of tariff

Italian tariffa, from Arabic taʽrīf notification

NEW! Time Traveler

First Known Use: 1592

See Words from the same year

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

tariff

verb

Definition of tariff

transitive verb

:to subject to a tariff

First Known Use of tariff

circa 1828

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of TARIFF

tariff

noun

What It Is

A tariff is a tax on imports or exports. Money collected under a tariff is called a duty or customs duty. Tariffs are used by governments to generate revenue or to protect domestic industries from competition.

How It Works

There are generally two types of tariffs. Ad valorem tariffs are calculated as a fixed percentage of the value of the imported good. When the international price of a good rises or falls, so does the tariff. A specific tariff is a fixed amount of money that does not vary with the price of the good. In some cases, both the ad valorem and specific tariffs are levied on the same product.

For example, Company XYZ produces cheese in Scotland and exports the cheese, which costs $100 per pound, to the United States. A 20% ad valorem tariff would require Company XYZ to pay the U.S. government $20 to export the cheese. A specific tax would involve charging $30 dollars per pound of cheese whether cheese sold for $100 or $200 per pound.

Why It Matters

Import and export taxes make it more expensive for users of foreign goods, causing a decline in imports, a decline in the supply of the good, and a resulting increase in the price of the good. The price increase usually motivates domestic producers to increase their output of the product.

Some economists argue that the resulting higher consumer prices, higher producer revenues and profits, and higher government revenues make tariff s a way to effectively transfer money from consumers to government treasuries. Some economists also argue that tariffs interfere with free market ideals by diverting resources to domestic industries that are less efficient than foreign producers.

Source: Investing Answers

TARIFF Defined for English Language Learners

tariff

play

noun

Definition of tariff for English Language Learners

: a tax on goods coming into or leaving a country
: a list of prices charged by a hotel or restaurant for meals, rooms, etc., or by a public company for gas, electricity, etc.

TARIFF Defined for Kids

tariff

play

noun tar·iff \ ˈter-əf \

Definition of tariff for Students

1 :a list of taxes placed by a government on goods coming into a country

2 :the tax or the rate of taxation set up in a tariff list

Law Dictionary

tariff

play

noun tar·iff \ ˈtar-əf \

legal Definition of tariff

1 a :a schedule of duties imposed by a government on imported or in some countries exported goods

b :a duty or rate of duty imposed in such a schedule

2 :a document filed with the appropriate government agency that sets forth the rates, charges, and other provisions pertaining to services furnished by a business (as a carrier) or public utility