A tariff
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A tariff is basically a tax that a government charges on goods coming into or going out of a country. Think of it like an entry fee at a theme park — if a product wants to “enter” a country, the government might ask for a payment at the border. Governments do this for a few reasons: to protect localRead more
A tariff is basically a tax that a government charges on goods coming into or going out of a country.
Think of it like an entry fee at a theme park — if a product wants to “enter” a country, the government might ask for a payment at the border. Governments do this for a few reasons: to protect local businesses from cheaper foreign products, to encourage people to buy locally made goods, or to raise money for national projects.
For example, if imported shoes have a tariff, they become more expensive in stores. That way, local shoe makers might have a better chance to compete.
It’s not always good or bad — tariffs can protect jobs, but they can also make everyday items more expensive.
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