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Tariff
A tariff is a tax on imported goods, usually a percentage of their value. It makes foreign goods more expensive, protects domestic producers and raises revenue, but often leads to higher prices for consumers and retaliation from trading partners.
Why It Matters
In 2025 and 2026, tariffs became a tool of foreign policy as much as trade policy.
In India
The US tariff on many Indian goods moved from 25% to 50% in August 2025, to 18% in February 2026 and to 10% under a new law in July 2026.