Tariffs

The most common type of trade control mechanism in which taxes a government places on goods traded internationally. If collected by the exporting country, it is known as an export tariff; if collected by a country through which the goods have passed, it is a transit tariff; if collected by the importing country, it is known as import tariff. The import tariff is by far the most common. High import tariffs inhibit imports and thus protect domestic industries. They also limit competition, which makes the cost of goods higher to consumers.