Definition, Meaning & Synonyms

protective tariff

noun

pruh-TEK-tiv TAR-if

Definition

A protective tariff is a tax imposed on imported goods to benefit domestic industries by making foreign products more expensive.

Examples

The government implemented a protective tariff to safeguard local farmers from cheaper foreign imports.
Many economists debate the effectiveness of protective tariffs in fostering a healthy economy.
Due to the protective tariff, the price of certain imported electronics rose significantly.

Meaning

Its main purpose is to protect local businesses from foreign competition by increasing the cost of imported goods, thereby encouraging consumers to purchase domestically produced items.