New Delhi: US President Donald Trump has agreed to hold off on 25 per cent tariffs imposed on Canada and Mexico for 30 days. On the other hand, a US tariff of 10 per cent on Chinese imports has come into effect. But, shortly after the tariff was imposed, China announced that it would impose retaliatory tariffs on a raft of American products, including 15 per cent of coal and liquefied natural gas and 10 per cent on crude oil and agricultural machinery.

Do you know what a tariff is and what a tariff war is? Tariffs are the taxes imposed on goods imported from other countries, while tariff war is an economic battle in countries that levy additional taxes on other’s exports. Read on to learn more about tariffs, tariff wars and more.

What is a Tariff?

Countries worldwide have used tariffs and import taxes to support local businesses by encouraging people to buy domestic products. After World War II, many advanced economies moved away from tariffs because they could reduce trade, raise consumer prices, and provoke responses from other countries.

A tariff is a tax that foreign-made goods must pay, and the importing........

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