The Tariff Trap: Understanding the Impact on Global Trade and the US Economy The imposition of tariffs has become a staple of modern international trade policy, with countries around the world imposing duties on imports to protect domestic industries and boost revenue.
But what are tariffs, exactly, and how do they impact global trade flows? Tariffs are taxes imposed by one country on imports from another, used to raise revenue, protect domestic industries, or both.
There are several types of tariffs, including ad valorem (percentage based) duties, specific duties (based on weight or quantity), and compound duties (a combination of ad valorem and specific duties).