The Economy & the Fed

Tariff

A tax on imported goods, paid by the importer when the goods enter the country. A tariff raises the price of imports, so buyers switch to other suppliers or buy less, and the cost is often passed on to shoppers as higher prices. Importers commonly rush to buy before a tariff takes effect and buy less afterwards, which can swing the trade balance, and GDP's net exports, sharply from one month or quarter to the next.

Educational information, not investment advice. See it applied across the screener →