The term refers to the fees or duties levied on imports or exports. These charges, also known as customs duties or tariffs, represent a tax imposed by a government on goods crossing its borders. For example, a government might impose a 10% charge on imported automobiles, increasing the price for consumers and potentially protecting domestic car manufacturers.
The application of these duties plays a significant role in international trade policy, impacting economic competitiveness, revenue generation, and geopolitical relationships. Historically, such impositions have been employed to protect nascent industries, raise government revenue, or retaliate against unfair trade practices. They can influence the flow of goods between nations, shaping economic landscapes and impacting global supply chains.
