What is a tariff barrier?

Tariff barriers are those taxes established by each country to restrict foreign trade. Normally, tariff barriers tax both exports and imports of goods or services carried out by a country. However, these types of rates are not limited only to countries, as there may also be tariff barriers by economic zones, such as those taxes on trade in the euro zone or the US dollar.

What are tariff barriers for?

When imposing a tariff, the name by which the impuestos that function as a tariff barrier, the price of the goods or services increases depending on the characteristics and volume of the transacción. This makes it possible to defend national products against foreign competition in the case of imports. In this way, national production is facilitated instead of acquiring these products outside the country.

But tariff barriers not only make products more expensive, but also help to control taxation and the legality of trade, since it facilitates knowing without the goods and exchanged services are audited and, therefore, if they are legal. As a result, the country that imposes the tariffs gets more revenue from tax collection while balancing prices with a view to selling its products in other foreign countries. In such a way that the greater internacionalización and ability to export, the more revenue a country can generate and the better it can stabilize the prices of its products.

Another use that some countries often give to tariff barriers is as a protection measure against foreign capital investment. It usually occurs in countries that attract the entry of capital due to their favorable conditions for investment, thus hindering this arrival through tariffs.

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