What is a Tariff?
A tariff is a type of tax that a government imposes on imported or exported goods. The purpose of a tariff is to increase government revenue and protect local industries from foreign competition.
Example:
If Pakistan imports cars from China and the government imposes a tariff of Rs. 50,000 per car, those cars will become more expensive in the local market. As a result, local car manufacturers benefit because consumers are more likely to buy cheaper locally-made vehicles.
News: How Much Tariff Did Trump Impose on Different Countries?
During former U.S. President Donald Trump’s tenure, high tariffs were imposed on imported goods from several countries. The tariff rates imposed on different countries were as follows:
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Syria: 41%
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Myanmar/Laos: 40%
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Iraq, Serbia: 35%
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India: 25%
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Taiwan: 20%
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Pakistan: 19%
These tariffs were applied to goods being imported into the United States from these countries, which impacted their exports and made their products more expensive in the U.S. market.
