♥Lisa♥ - Queen of Random

1. What tariffs are A tariff is basically a tax that a government places on goods imported from another country. Think of it as a fee charged at the border before the product is allowed into the country. Example: If the U.S. puts a 10% tariff on imported steel, any company bringing steel from abroad has to pay an extra 10% of its value to the U.S. government. 2. Why tariffs exist Governments use tariffs for a few main reasons: Protect domestic industries – Makes foreign goods more expensive so local businesses can compete more easily. Raise revenue – The government collects money from the tariff. Political leverage – Can be used in trade negotiations. 3. Who actually pays for tariffs Here’s where people get confused: The importer (the company bringing the goods into the country) pays the tariff to the government at the border. But… importers usually pass this cost along to others—wholesalers, retailers, and eventually consumers —through higher prices. ...