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Article: Tariffs
- Article from:
- Gale Encyclopedia of U.S. Economic History
CopyrightCOPYRIGHT 2000 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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TARIFFS
A tariff is a tax charged on imports either on the basis of quantity (for example, "per ton;" these are called specific tariffs) or on the basis of their value (called
ad valorem
tariffs). Tariffs are the primary means by which governments protect their industries from foreign competition. Tariffs can be levied directly, as goods cross the border, or indirectly, by requiring that a license or permit be purchased before the goods can be shipped. Tariffs generally serve two purposes: to generate tax revenues and to protect a domestic industry from foreign competition. If a government wants to encourage the growth of a newly emerging industry it can also use tariffs to free these ...