What is the purpose of a tariff in international trade?

A tariff serves primarily to impose a tax on imported goods, effectively raising their prices in the domestic market. This mechanism is designed to protect domestic industries by making imported products less competitively priced compared to locally produced goods. When tariffs are in place, consumers tend to favor domestic products over more expensive imports, which can help foster local production and maintain or create jobs within the country.

The underlying rationale for implementing tariffs often includes promoting national interests, encouraging local industries to grow, and securing a favorable balance of trade. By increasing the cost of foreign products, tariffs can deter consumers from purchasing imports, thus benefiting the local economy.

The other options do not accurately describe the main function of tariffs in international trade; subsidies to exporters and the facilitation of quicker transactions relate to different aspects of trade assistance and agreements, while customs regulations remain necessary for monitoring and enforcing trade laws, regardless of tariff applications.