1

tariff

noun tar·iff \ ˈter-əf , ˈta-rəf \
Updated on: 19 Nov 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

Recent Examples of tariff from the Web

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Origin and Etymology of tariff

Italian tariffa, from Arabic taʽrīf notification


2

tariff

verb

Definition of tariff

transitive verb
:to subject to a tariff

First Known Use of tariff

circa 1828


Financial Definition of TARIFF

tariff

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.


TARIFF Defined for English Language Learners

tariff

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

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

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

Origin and Etymology of tariff

Italian tariffa, from Arabic taʽrīf notification



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