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Here’s a complete explanation of “Tariff” in English, covering what it is, why it’s applied, how much it can be, and its impact on the public.

1. What is a Tariff?

A tariff is a tax or duty imposed by a government on goods and services imported into or exported from a country.

• Import Tariff – Tax on goods coming into the country.
• Export Tariff – Tax on goods going out of the country (less common).

2. Why Are Tariffs Imposed?

Governments use tariffs for various economic and strategic reasons:

3. How Much Tariff Can Be Imposed?

There is no fixed limit, but:

• Tariffs are usually regulated under World Trade Organization (WTO) rules.
• Developing countries like India often impose tariffs ranging from 5% to 20% on average.
• In some cases (like luxury goods, tobacco, or protective tariffs), tariffs can go as high as 100% or more.

Each country decides its own tariff rates based on economic policies.

4. What Are the Effects of Tariffs on the Public?

Public Benefits (Advantages):

• Boost to local industries – Encourages domestic production and job creation.
• National economic growth – Less dependency on foreign goods.
• Support for small businesses – Protects them from international competition.

Public Losses (Disadvantages):

• Higher prices – Imported goods become more expensive for consumers.
• Fewer choices – Limited access to certain foreign products.
• Risk of inflation – If tariffs raise prices widely.
• Trade retaliation – Other countries may impose tariffs in response, hurting exports.

5. Real-World Example:

If a country imposes a 30% import tariff on foreign cars, it:

• Helps local car companies grow.
• Increases the price of foreign cars for buyers.
• May lead to a trade dispute if the exporting country responds with its own tariffs.

Conclusion:

A tariff is a powerful economic tool. If used wisely, it can strengthen local industries and increase government revenue, but if misused, it can hurt consumers with higher prices and trigger trade wars.

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