Trade tariffs are taxes imposed on imported goods.

They serve two primary purposes:

• protecting domestic industries from foreign competition and
• raising revenue for governments.

When a country imposes a tariff, it increases the price of imported goods, making them less competitive compared to domestically produced alternatives. This can help local businesses thrive while potentially harming consumers due to higher prices. 

Tariffs come in different forms, including ad valorem (a percentage of product value), specific (fixed amount per unit), compound (combination of both), and others like anti-dumping duties. Countries often use tariffs strategically during trade negotiations or disputes.  However, excessive use of tariffs can lead to retaliatory measures from other countries, escalating into trade wars. Balancing protectionism with free trade is crucial for economic stability and international relations.