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Tariffs on Imports definitions

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  • Tariff
    A tax applied to goods brought into a country, raising their price and affecting trade and market outcomes.
  • Import
    Goods produced abroad and purchased by domestic consumers, often affected by taxes that alter their market presence.
  • World Price
    The prevailing cost of a good in global markets, serving as a benchmark for domestic and international transactions.
  • Domestic Supply
    The quantity of a good produced within a country, influenced by market prices and trade policies.
  • Domestic Demand
    The amount of a good desired by consumers within a country, shaped by price changes and trade restrictions.
  • Consumer Surplus
    The benefit consumers receive when they pay less than what they are willing to for a good, reduced by higher prices.
  • Producer Surplus
    The advantage producers gain when they sell at prices above their minimum acceptable level, often increased by trade barriers.
  • Government Revenue
    Funds collected by authorities from taxes on imported goods, used for public services and expenditures.
  • Deadweight Loss
    The lost economic value from trades that no longer occur due to market distortions, such as taxes on imports.
  • Total Surplus
    The combined gains of consumers, producers, and government, diminished by inefficiencies like deadweight loss.
  • Revenue Tariff
    A tax on imports designed primarily to generate income for the government rather than protect domestic industries.
  • Protective Tariff
    A tax on imports intended to shield domestic producers from foreign competition by raising the cost of imported goods.
  • Free Trade
    An economic environment where goods move across borders without restrictions, often altered by tariffs.
  • Quantity Supplied
    The amount of a good offered for sale at a specific price, which can increase when trade barriers raise market prices.
  • Quantity Demanded
    The amount of a good buyers wish to purchase at a given price, typically reduced when tariffs raise costs.