An example of a tariff is a 3% tax on imported corn. This means that when corn is imported into a country, a 3% tax is added to the cost of the corn, making it more expensive for domestic importers and consumers. This tariff raises the price of imported corn, encouraging consumers to prefer domestically produced corn over the imported one.
Another example includes the US tariffs of 25% on aluminum and steel imports, which means that for a shipment valued at $5,000, the importer would pay an additional $1,250 as a tariff. Additionally, specific tariffs can be a fixed amount per unit, such as a $0.51 tariff on each wristwatch imported into the US.
Tariffs are generally used to protect domestic industries by making imported goods more expensive and less competitive than locally produced goods, as well as to generate revenue for the government.
