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Typically, tariffs are employed to defend home sectors facing hardship from unfair overseas competition and unfair business practices like dumping and foreign government subsidies. Ad valorem taxes and specific tariffs are the two fundamental forms of tariffs.
Governments impose taxes, known as tariffs or duties, on the value of imported goods, including their freight and insurance. Varying countries impose different tariffs on certain products.
These include retaliatory tariffs, compound tariffs, tariff-rate quotas, ad valorem tariffs, and particular tariffs. A particular tariff is a tax that is tacked directly onto a single imported good and is unrelated to the value of that import. Typically, a certain tariff is determined by the volume or number of imported items.
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