What are tariffs classified as in international trade?

Tariffs are classified as taxes on imported goods because they are imposed by a government to regulate the flow of goods entering a country. This tax increases the cost of imported products, making them less competitive compared to domestic goods. By doing this, tariffs can protect local industries from foreign competition and can also serve as a source of revenue for the government.

In international trade, understanding tariffs is crucial because they can significantly influence pricing, trade balances, and international relations between countries. The classification of tariffs as a tax underlines their role in not only generating government funds but also in shaping trade policies and economic strategies.