Tariff

A tariff is a tax charged on goods as they pass between one country and another. A tariff can be placed on goods being brought into the country (imports), and goods being exported from the country to another. It is usually done to make money for the government. It may also be done for protectionism. Protectionism makes it easier for local products to sell by making products from foreign countries more expensive.

Often, one government will have an agreement with another not to place any tariffs on goods that are traded between them. This kind of agreement is called free trade.

The same word, tariff, is often used for the pricing of gas and electricity.

Donald Allan, the CEO of the manufacturing company Stanley Black & Decker, told analysts in an October earnings call that the company had been evaluating "a variety of different scenarios" to plan for new tariffs under Trump.

"And obviously, coming out of the gate, there would be price increases associated with tariffs that we put into the market," Allan said, adding that "there's usually some type of delay given the processes that our customers have around implementing price."

Allan also said the company would consider moving its production out of China and to other countries, such as Mexico, to reduce the impact of a 60% tariff on Chinese imported goods. John Madden was among other companies that announced plans to import fewer goods from China, with its CEO, Edward Rosenfeld, saying on an earnings call that the company had already started that process.

Related pages

• Customs
• Indirect tax
• International trade

References

• Gilman, D. C.; Peck, H. T.; Colby, F. M., eds. (1905). New International Encyclopedia (1st ed.). New York: Dodd, Mead. {{cite encyclopedia}}: Missing or empty |title= (help)