What is Tariff? Why Tariff impose by a government on imported goods?

 

A tariff is normally a tax which is imposed on imports and exports between two countries, it aims to regulate foreign trade to encourage domestic production.

A tax imposed on the goods and services which are imported from foreign countries.

A tariff is imposed because of the following reasons.

To promote infant industries in the domestic country.

To increase the revenue collection for those companies who will continue to import products.

To reduce dumping and substandard goods and commodities.