Tariff

A tariff is a tax that a government places on goods imported from other countries. When you buy a foreign product, a tariff increases its cost—the seller or importer pays the tax, which often gets passed to you as a higher price. You'll hear about tariffs in the news because they affect everything from car prices to electronics, and they're a tool governments use to protect local businesses or raise revenue. For example, if the U.S. puts a 25% tariff on steel from Country X, American steel companies face less competition, but construction companies that buy steel pay more. Tariffs matter to investors because they can boost some companies' profits while hurting others, depending on whether they benefit from protection or rely on cheap imports.