tariff

noun tar·iff \ ˈter-əf , ˈta-rəf \

|Updated on: 8 Jul 2018

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

LMC Automotive last month estimated a 25 percent tariff would reduce U.S. auto sales by 1 million annually.

— NBC News, "Trump's tariffs will lead to job losses, warns General Motors CEO," 2 July 2018
Higher tariffs could increase the prices of cars exported to China and components that Tesla imports from that country.

— neal e. boudette, New York Times, "Tesla Achieves a Key Weekly Goal for Producing Its Model 3," 2 July 2018
Andy Puzder: Trump's trade critics are wrong -- His tariffs could bring major benefits to America.

— Fox News, "FOX NEWS FIRST: Trump predicts Dems will be put on ICE in November; Dems in dissension; Mexico elects ‘messiah’," 2 July 2018
As the tough trade talk between Trump and Beijing turns to actual tariffs this week, investors confidence is shaken.

— tom hudson, miamiherald, "Testing the tempers of investors," 30 June 2018
Mr Trump accused it of using tariffs as an excuse to move jobs outside America.

— The Economist, "Business this week," 28 June 2018
But the evening's biggest statement may have been Claude Morais' own political one, commenting on the fallout from President Donald Trump's trade tariffs on American businesses.

— booth moore, The Hollywood Reporter, "Wolk Morais Taps Into Midcentury California Cool For Runway Show," 27 June 2018
Scott Olson / Getty Images Harley-Davidson will shift some production of its iconic motorcycles overseas to avoid retaliatory tariffs imposed by the European Union in response to President Trump’s trade moves.

— recode staff, Recode, "Recode Daily: Trump’s tariffs backfire in his face as Harley-Davidson says it will move some production overseas," 26 June 2018
During the 2000s, many factory and engineering jobs moved to Asia, which suddenly boasted lower tariffs to go along with even lower wages than the ones in Guadalajara.

— andrew selee, Smithsonian, "How Guadalajara Reinvented Itself as a Technology Hub," 13 June 2018

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

in the meaning defined at sense 1a

See Words from the same year

Other Economics Terms

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

tariff

verb

Definition of tariff

tariffed; tariffing; tariffs

transitive verb

: to subject to a tariff

Recent Examples of tariff from the Web

Trump’s latest salvo in a brewing trade war would mean a sizable amount of Chinese goods shipped to the U.S. would be exposed to tariff threats and raises new questions about the impact on American consumers.

— Fortune, "President Trump Targets $200 Billion in Chinese Imports as Trade Spat Grows," 19 June 2018

First Known Use of tariff

circa 1828

in the meaning defined above

See Words from the same year

NEW! Time Traveler

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

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