Bryan McAllister’s personal reference notebook
July 27, 2026Short & citedBlog
Civic Viewpoint.
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Money & Work • Trade

Tariff

A tariff is a tax or duty imposed on goods crossing a national border, most often on imports.

Updated July 27, 20261 min readCited sources

A tariff is a tax or duty imposed on goods crossing a national border, most often on imports. Governments use tariffs to raise revenue and protect domestic industries from foreign competition.

What it is

A tariff is a customs duty levied on goods moving across a national border, especially imports. Common types include ad valorem (percentage of value), specific (fixed amount per unit), and compound tariffs (combination of both). The term can also refer to a schedule of prices or charges for services.

Why it matters

Tariffs make imported goods more expensive, giving domestic producers a price advantage. They are used to generate revenue and protect domestic industries. For Canada, customs duties and trade policy are key in relationships with the United States and other partners, affecting classification and duty rates.

Key details

Tariffs have long been used as trade-policy tools, including to shield domestic industries and respond to foreign practices. Many countries have reduced trade barriers under agreements like GATT and the WTO. Tariffs also appear in non-trade contexts as a schedule of charges for utilities or hotels.

In short

  • Tariffs are taxes on imported goods.
  • They can be ad valorem, specific, or compound.
  • Used for revenue and protecting domestic industries.
  • Also means a price schedule for services.
Canadian angle

Tariffs matter to Canadian readers because Canada uses customs duties and trade policy in its trade relationships, including with the United States and other partners. The term is also relevant in Canadian law and business when imported goods are classified for duty purposes.

Quick questions

What is a tariff?
A tariff is a tax or duty on goods entering or, less commonly, leaving a country.
Who pays a tariff?
Tariffs are generally paid by the importing business or importer to the government, though the cost may be passed on to consumers.
Why do governments use tariffs?
Governments use tariffs to raise revenue, protect domestic industries, and sometimes respond to trade disputes.

Sources

  1. European Commission — https://trade.ec.europa.eu/access-to-markets/en/glossary/tariff
    Supports: Defines tariff as a customs duty or tax on imported merchandise goods; explains ad valorem, specific, and compound tariffs; notes revenue and price effects.
  2. Encyclopaedia Britannica — https://www.britannica.com/money/tariff
    Supports: Defines tariffs as taxes on goods crossing national boundaries and notes their use for revenue and price effects.
  3. Merriam-Webster — https://www.merriam-webster.com/dictionary/tariff
    Supports: Defines tariff as a schedule of duties or rates and also as a schedule of prices or charges for services.
  4. Council on Foreign Relations — https://www.cfr.org/backgrounders/what-are-tariffs
    Supports: Explains common tariff types, policy purposes, and the tendency for costs to be passed to consumers.
  5. Cornell Law School Legal Information Institute — https://www.law.cornell.edu/wex/tariff
    Supports: Defines tariff as a tax on imported goods and notes historical context and customs classification in U.S. law.