tariff

A tariff is a tax imposed on imported goods. It is also known as a customs duty. Before World War II, many countries, including the United States, followed protectionist trade policies, and U.S. tariffs reached historic highs. After the war, tariffs declined with the rise of free trade and the signing of the GATT, which later led to the formation of the WTO. The U.S. Customs and Border Protection is the law enforcement organization responsible for tariff classification in the United States.

See also: the United States Harmonized Tariff Schedule.

[Last reviewed in July of 2025 by the Wex Definitions Team] 

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