ranjan

Tariff is known as an import tax imposed by a Government on imported goods paid by the importer. It serves as a revenue source and regulate foreign trade protecting domestic industry by increasing cost of foreign products. This concept dates back to ancient civilizations when traders were taxed on goods when they entered city/states. Most countries are limited by their natural resources and ability to produce goods and services effecting trade with other countries to get what their population needs.  Trade isn't always conducted in an amicable manner as the competition, policies. geopolitics and other factors can make trading partners unhappy. One of the ways Goverments deal with trading partners they disagree is through tariffs. Mostly tariffs are imposed to reduce the value of imports and increase Govt. revenue  In addition, there are variety of other reasons as well like to balance the trade and of payments to the rest of world, stimulate slow in domestic employment, restri...