What is the term for a tax on imported goods?

A tax imposed on imported goods is called a tariff.

Tariffs are usually charged when merchandise crosses a country’s customs border. Depending on the policy, the charge may be a percentage of the item’s value, a fixed amount per unit, or a combination of both. Importers generally pay the duty to customs and may pass the added cost to wholesalers, retailers, or consumers.

Governments use tariffs to raise revenue, protect domestic industries from foreign competition, or apply pressure in trade disputes. A tariff can make imported goods more expensive and may encourage buyers to choose locally produced alternatives. Trading partners can respond with retaliatory tariffs, affecting prices and supply chains on both sides.

Tariff is not the same as a quota, which limits the quantity of a good that may enter. An embargo is a ban or severe restriction on trade, while a subsidy is financial support—often for domestic producers or exporters. Modern trade agreements frequently reduce or eliminate tariffs among participating countries, but exceptions and special duties remain common in sensitive industries.