Tariff - American businessA tariff is a tax or duty imposed on
goods imported into a nation. Tariffs increase the price of
imported PRODUCTs. The U.S. Constitution authorizes Congress to
levy uniform tariffs on IMPORTS. There are several types of U.S.
tariffs, the most common being an ad valorem (“according to the
value”) rate. Ad valorem rates are assessed in proportion to the
value of the good, for example 10 percent of the value. Tariffs
may also be assessed at specific or compound rates. Specific
rates are based on weight measures (i.e., pounds, ounces), while
a compound rate is a mixture of an ad valorem and a specific-
rate tariff. Tariff-rate quotas impose a limit on imports at a
specific rate up to a certain amount. Imports in excess of that
amount are subject to a higher rate of tariff. Thus tariff-rate
quotas discourage imports in excess of the specified quota at
the lower tariff level. In the 18th century, tariffs were
initially used to generate revenue for the federal government.
In many developing