Answer :
When country imposes a tax on imported goods this is an example of a Tariff.
Taxes are deductions from one's income or purchases made during tax season that are made up of a specified proportion.
Contrarily, tariffs only apply to goods entering or leaving the nation. The United States may decide, for instance, to impose a levy on cars entering the nation from Japan.
To import the car, they would have to pay a charge or a specific percentage of its value.
Tariffs serve three main purposes: to generate income, to safeguard domestic industries, and to correct trade distortions (punitive function). The revenue function results from the fact that tariff revenue serves as a source of funding for governments.
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