Tariff
Category: trade
A tax imposed on imported goods, usually based on the product's value or classification.
A tariff is a tax imposed by a government on imported goods, calculated as a percentage of the goods' value (ad valorem) or as a fixed amount per unit (specific duty). Tariffs serve to protect domestic industries and generate government revenue. Cross-border e-commerce sellers must understand applicable tariffs for each market, as these directly impact product pricing and competitiveness.
Examples
- • US import duty on most consumer electronics from China is 0-4.9% MFN rate, but Section 301 tariffs add up to 25% additional duty.
- • EU tariffs on clothing imports range from 8-12%, while electronics typically face 0-14% duty depending on the specific HS code.
- • A seller importing $100,000 of goods with a 10% tariff rate owes $10,000 in customs duties, which must be factored into pricing.