tariff

noun tar·iff \ ˈter-əf , ˈta-rəf \

|Updated on: 9 Jun 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

Last week, Ryan issued a statement opposing the president's decision to impose tariffs even on America's allies.

— CBS News, "Paul Ryan breaks with Trump on "spygate claim," 6 June 2018
After the Trump administration moved to impose tariffs on steel and aluminum imports from U.S. allies in Europe and North America, retaliatory measures were announced and angry messages sent.

— ishaan tharoor, Washington Post, "On trade and North Korea, Trump tries to play disrupter," 4 June 2018
What, specifically, are the effects of these tariffs likely to be?

— heather souvaine horn, The New Republic, "Why Steel Tariffs Matter," 4 June 2018
Indeed, while Trump may seem hellbent on divisive wall-talk and trade tariffs, conversations around the thriving heartbeat of Mexico have never been louder, nor has the capital welcomed more outsiders.

— mosha lundström halbert, Vogue, "The Latina Cool Girl’s Guide to Mexico City," 4 June 2018
Then Trump masterfully distracted people with talk of pardons and announced tariffs on metals imported from our European and North American allies.

— ted slowik, Daily Southtown, "Slowik: We must demand Trump stop separating children from families," 2 June 2018
The administration on Thursday imposed tariffs on steel and aluminum imports from key allies in Europe, Canada, and Mexico.

— christopher rugaber, The Christian Science Monitor, "US economy shows firm footing with unemployment at 18-year low," 1 June 2018
Instead, a set of tariffs your administration imposed at midnight has us worried that our signature spirit's sales could soon slip.

— bailey loosemore, The Courier-Journal, "Kentucky wants to drink bourbon for its birthday - not worry about it," 1 June 2018
Trudeau, who is embroiled in trade discussions with Trump and has received an exemption to U.S. steel tariffs, must look for consensus on a host of issues on which Trump is at odds with his allies.

— jean chemnick, Scientific American, "How the World Is Coping 1 Year After Trump Abandoned Paris Climate Pact," 31 May 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

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