Frequently Asked Questions

A tariff is a government fee on imported goods, often used to protect local industries or for other economic and political reasons, which can ultimately increase the cost of those goods for consumers and businesses.

The company importing the goods always pays the tariff. But the cost often gets passed on to consumers and businesses.

The overall impact of tariffs on the economy is complex and depends on various factors, including the size and scope of the tariffs, the responsiveness of consumers and businesses, and the reactions of other countries. Economists generally agree that while tariffs might offer short-term benefits to specific domestic industries, they often lead to negative consequences for the broader economy in the long run.

Kind of.

They are all types of taxes on goods coming into a country, but used in slightly different ways or in different contexts. The terms are often used interchangeably.

1. Tariff – A government rule that says "Pay this much to bring in goods"
2. 1. Heard/Used In: News, trade policies
   2. Example: "The U.S. added tariffs on Canadian lumber"
   3. Simply Put: The policy or rate

1. Import Tax – A general tax on anything you bring into the country
2. 1. Heard/Used In: Shipping, customs forms
   2. Example: "You paid $50 import tax on your new laptop"
   3. Simply Put: A broad term for any tax on imports

1. Duty – A specific fee for certain items
2. 1. Heard/Used In: Customs forms, border checks
   2. Example: "Customs charged duty on imported steel"
   3. Simply Put: The actual charge you pay, often calculated at the border