What is a tariff?

• A. An extra charge
• B. A tax on imports
• C. A government grant
• D. A license to trade

Answer: (A)

Tariffs are government taxes placed on goods imported from other countries. They raise revenue for the government and make imported products more expensive, which can encourage people to buy domestically produced goods. This definition distinguishes a tariff from a simple extra charge, a government grant, or a license to trade. An extra charge might describe some costs, but a tariff is specifically a tax tied to international trade at the border, not money given to support a business or a permit to trade.