What "tariff" means in finance

A tariff is a tax or duty that a government imposes on imported or exported goods. The purpose of a tariff is to protect domestic industries from foreign competition by increasing the price of foreign products, making them less attractive to consumers. Tariffs can also be used to generate revenue for the government or as a bargaining tool in trade negotiations. Tariffs can be specific (a fixed amount per unit of goods) or ad valorem (a percentage of the value of the goods).