Tariff
Tax on imports, making foreign goods more expensive.
Formula
Price after Tariff = Import Price + Tariff Amount
Real World
When the US imposed 25% tariffs on £10bn of UK goods in 2019 (including Scotch whisky), Scottish distillers saw exports to the US fall by over 30% within months.
Exam Focus
Always analyse tariffs from two perspectives: domestic producers gain protection, but consumers face higher prices — balanced analysis secures top marks.
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