# Tariff

*Macro & Economy — Finicade finance glossary*

A tariff is a tax on imports, raising their price to protect domestic producers or raise revenue. Standard analysis finds the cost falls mostly on domestic consumers and firms buying inputs, and empirical work on the 2018 US tariffs found near-complete pass-through into domestic prices. Protected industries gain, downstream industries and consumers lose more, and retaliation usually follows.

**Also known as:** import duty, customs duty, protectionism

**Related terms:** [Trade Deficit](https://finicade.com/glossary/trade-deficit), [Comparative Advantage](https://finicade.com/glossary/comparative-advantage), [Price Elasticity of Demand](https://finicade.com/glossary/price-elasticity-of-demand), [Inflation](https://finicade.com/glossary/inflation), [Supply and Demand](https://finicade.com/glossary/supply-and-demand)

Source: https://finicade.com/glossary/tariff