WHAT IS TARIFF?

        A tariff is a tax or duty imposed by a government on imported goods (and less commonly, exported goods) to control trade, protect domestic industries, and generate revenue. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for government.
Why Tariffs are Used:–1) To protect domestic industries from foreign trade competition.2) To generate revenue for government.3) To trade balance by reducing imports and encouraging the use of domestic products.4) To reduce reliance on other countries for essential goods, such as energy or military equipment for maintaining strategic concerns.

There are major two types of Tariffs:–1) Ad Valorem Tariff:– An ad valorem tariff is a tax that’s levied as a percentage of the imported product’s value. Example:– An ad-valorem tariff is levied based on the item’s value, such as 5% of an import’s value.2) Specific Tariff:– A specific tariff is levied on a product irrespective of its value. Example:– A specific tariff is levied as a fixed fee based on the type of item, such as a $500 tariff on a car. 
Also there are other two types of Tariff:–1) Specific Tariffs.2) Compound Tariffs.
The most common tariff are Ad Valorem Tariff and Specific Tariff.
Example of Tariff in India:- If India imposes a 20% tariff on imported furniture worth ₹2,00,000, the tariff amount would be: Tariff = ₹ 2,00,000 × 0.20 = ₹ 40,000.Another example for tariffs:– cell phone bills are charged in cents or rands per minute (R/minute) and electricity is charged in cents per kilowatt hour or c/kWh

How tariff work:– As an additional charge on an import, a tariff works to reroute a buyer’s intentions and money away from the country exporting the good.Strategically, tariff can cause inflation.
ADVANTAGE & DISADVANTAGES OF TARIFFS:–Produce revenuesOpen negotiationsSupport a nation’s goalmake a market predictable disadvantages :–Create issues between governmentsinitiate trade wars.

Countries with most Tariffs:–

With the prospect of increased tariffs looming, World Finance lists the countries that impose the highest charges on imported goods.

1 – The Bahamas (18.56%) …

2 – Gabon (16.93%) …

3 – Chad (16.36%) …

4 – Bermuda (15.39%) …

5 – Central African Republic (14.51%).

TARIFF FREE COUNTRIES:–

Australia

Bahrain

Canada (included in the United States Mexico Canada Agreement USMCA)

Chile

Colombia

Costa Rica (included in the Dominican Republic – Central America FTA [CAFTA-DR])

Dominican Republic (included in CAFTA-DR)

El Salvador (included in CAFTA-DR)

Guatemala (included in CAFTA-DR)

Honduras (included in CAFTA-DR)

Israel

Jordan

Korea

Mexico (included in the United States Mexico Canada Agreement USMCA)

Morocco

Nicaragua (included in CAFTA-DR)

Oman

Panama

Peru

Singapore.