The most common barriers to trade are tariffs, quotas, and nontariff barriers. A tariff is a tax on imports, which is collected by the federal government and which raises the price of the goods to the consumer. Also known as duties or import duties, tariffs usually aim first to limit imports and second to raise revenue.
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.
Example
An import quota is a restriction placed on the amount of a particular good that can be imported. This sort of barrier is often associated with the issuance of licenses. For example, a country may place a quota on the volume of imported citrus fruit that is allowed.
