Explain the concept of tariffs.

Explain the concept of tariffs.

Tariffs refer to taxes or duties imposed on imported goods by a government. They are designed to increase the price of imported goods, making them less competitive compared to domestically produced goods. Tariffs are used to protect domestic industries, promote local production, and generate revenue for the government. However, they can also lead to higher prices for consumers, reduced choices, and potential trade disputes with other countries.