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One common strategy governments use to manage disputes with trade partners is imposing tariffs. Tariffs are taxes or duties imposed by governments on imported (and sometimes exported) goods.

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These taxes are typically calculated as a percentage of the declared value of the goods, known as. This increases the overall cost for the importer, which could affect.

For example, if an indian company imports steel from another country, a tariff may be applied to the cost of that steel.

A tariff is a tax on imported goods and services to influence trade relations, generate. Tariffs are trade barriers—they restrict the international exchange of goods and services. For example, norwegian and swedish duties on exports of forest products were levied chiefly to encourage milling, woodworking, and paper manufacturing at home.

Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers. Tariffs are used to restrict imports.

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The local government imposes charges on the total value or quantity of products imported from foreign.

Understand how they impact global trade, pricing, and supply chain strategies. Similarly, duties on the export.

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