Tariff
A tax charged on goods as they pass between one country and another
Real World Example
In the 1780s, after the American Revolution, tariffs were crucial for the new U.S. government to generate revenue and protect budding American industries from foreign competition. Without a strong central authority, the Articles of Confederation made it difficult for the federal government to impose tariffs effectively, leading to financial struggles. This challenge highlighted the need for a stronger federal government, which was addressed by the U.S. Constitution in 1789. Today, tariffs still matter as they can influence the prices of imported goods, affecting everyday costs and the economy. For instance, if a tariff is placed on electronics from another country, the price of smartphones might increase, impacting how much you or your family pay for new devices.
