Tariff
A tariff is a tax on imports or exports between sovereign states. It is a form of regulation of foreign trade. It is a policy that taxes foreign products to encourage or protect domestic industry. It helps limit trade deficits. The tariff is historically used to protect infant industries and to allow import substitution industrialization.
Supply management (Canada)
A tariff-rate quota (TRQ) is an international trade policy tool that combines import quotas and tariffs. By 2013, there were approximately 1200 WTO TRQs in the agricultural sector annually among supplying countries under GATT Article XIII. TRQs are a result of the "current market access requirements" and the "minimum market access requirements" forming the basis of the "Uruguay Round country schedules for agriculture." TRQs are two-tiered tariffs in which quotas of certain sensitive domestic products are assigned a quantitative threshold or WTO "minimum access commitments" for imports during a designated time period. Tariffs for imports that are at or below the threshold, are either nonexistent or very low. Imports above the quantitative threshold, are much higher, making the cost of importation intentionally prohibitive. Once imports exceed the "minimum access commitments" as required by the World Trade Organization (WTO), which allow for imports at no or lower tariffs, in Canada imports face prohibitive tariffs such as 168% for eggs, 285% for chicken, 246% for cheese and over 300% for butter. These steep tariffs have been often cited to criticize SM for creating barriers to free trade and artificially raising prices by SM critics such as David E. Bond (2010), Andrew Coyne (2011), Hall Findlay (2012) and President Trump in 2016.