Meaning & use

protective tariff

noun·Academicbusiness

Last updated

UK/prəˌtektɪv ˈtærɪf/
US/prəˌtektɪv ˈterɪf/

Meaning

  1. nouncountablebusiness

    A tax placed on imported goods so they cost more than home-made ones, helping local producers compete.

    Grammar: A count noun, often with on: a protective tariff on steel.

    Patterns

    • a protective tariff on something

    The government introduced a protective tariff on imported steel.

    Farmers welcomed the protective tariff because it raised the price of foreign grain.

    Critics say a protective tariff makes everyday goods more expensive.

Word forms

pluralprotective tariffs

Common combinations

impose a protective tariff
The country imposed a protective tariff on cars.
high protective tariff
A high protective tariff shielded the young industry.
protective tariff on imports
A protective tariff on imports raised prices at the shops.
remove protective tariffs
Trade talks aimed to remove protective tariffs.
protective tariff policy
The party defended its protective tariff policy.

Synonyms and how they differ

import duty
Import duty is a general tax on imports for any reason, while a protective tariff is specifically meant to shield local producers.
trade barrier
Trade barrier includes quotas and rules as well as taxes, whereas protective tariff names one kind, a tax.
customs duty
Customs duty is the neutral legal term, and it may be meant to raise revenue rather than protect industry.

Opposites

Word family

protectionism noun
the policy of shielding home industries from foreign competition
protectionist adjective
favoring taxes or limits on imports
tariff noun
a tax on imported or exported goods
protect verb
to keep safe from harm

Commonly confused: protective tariff or revenue tariff?

protective tariff vs revenue tariff

A revenue tariff is set mainly to raise money for the government, so it is usually lower. A protective tariff is set high enough to make imports uncompetitive.

Practice

A tax placed on imported cars mainly to help local carmakers compete is called a ___.

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