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Import Tariff increases the price of certain foreign-made goods.
<u>Explanation: </u>
An Import Tariff is an economic term that is referred to as tax and is collected by the government on imported services and goods from foreign countries. In simple terms, it can be said that tariffs are the taxes paid for every import. It is paid by registered firms in the US to customs for goods that they import into the country.
Tariffs decrease the trade deficit and pressure from the foreign exporters. And that is why importers often transfer the costs of tariffs on to customers consumers and manufacturers in the US by increasing their prices. The current trade-weighted average import tariff rate is 2 in the US on industrial goods.