A tariff is a tax imposed by a government on imported goods. This tax makes foreign products more expensive, encouraging consumers to buy local products instead. For example, if a country places a tariff on imported cars, it can help domestic car manufacturers like Ford or Toyota compete better in the market.
Tariffs can also be used as a tool in international trade negotiations. Countries may impose tariffs to protect their industries or to retaliate against unfair trade practices. However, high tariffs can lead to trade wars, affecting global markets and consumers, as seen in recent disputes between the United States and China.