Tariff.
In plain English
A tariff is a tax charged on products brought in from another country. Governments use tariffs to raise revenue and to protect domestic industries by making foreign goods more expensive. The cost is usually passed along the chain: importers pay the tariff, and much of it shows up as higher prices for businesses and shoppers. Tariffs can also invite retaliation, where other countries tax your exports back, which is how trade disputes escalate.
01Why it matters
Tariffs feed directly into the prices you pay on imported goods, so a new tariff can quietly raise the cost of everyday products.
02The math, step by step
A country puts a 25 percent tariff on imported steel. A US company that buys foreign steel pays more, and it passes much of that cost into the price of the products it makes.
03What this is NOT
A tariff is NOT paid by the foreign country. The importer pays it, and much of the cost is passed on to domestic businesses and consumers through higher prices.