Tariff

A tariff is a government-imposed tax or duty levied on goods that are imported (or, less commonly, exported) across international borders — used as a trade policy instrument to raise government revenue, protect domestic industries from foreign competition, or serve as a diplomatic or retaliatory tool in international trade negotiations. Import tariffs increase the price of imported goods in the domestic market, making domestically produced goods relatively more competitive. In India, customs duties — including basic customs duty (BCD), integrated GST (IGST), and other levies — constitute the primary tariff structure governing imports. Globally, the US-China trade war tariffs and the Biden/Trump-era tariff escalations have significantly reshaped supply chains and commodity trade flows. For equity investors and analysts on Ventura Securities, tariff changes are critical events for assessing sector competitiveness — tariff hikes on imports benefit domestic manufacturers (steel, electronics, chemicals) while hurting import-dependent industries, and tariff reductions under FTAs create competitive headwinds for incumbents but reduce input costs for downstream manufacturers.