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.