Government taxes on products or services entering a country that primarily serve to raise prices on imports are known as

Question

BlackTom AI · Accepted Answer

To address the question, we evaluate what each option represents in the context of international trade policy.
Option 1: quotas. Quotas are quantity limits on imports, not taxes, so they raise barriers by restricting the number of goods rather than by changing prices through a levy.
Option 2: trade subsidies. Trade subsidies are payments or incentives given by a government to domestic producers to make them more competitive, which indirectly affect trade but do not constitute taxes on imported goods themselves.
Option 3: tariffs. Tariffs are taxes imposed on goods as they cross a border, typically collected at the point of import, and they raise the price of imported products for consumers or businesses, effectively protecting domestic industries by making imports more expensive.
Option 4: WTO taxes. There is no standard instrument known as WTO taxes; the WTO governs trade rules but does not levy a specific category called 'WTO taxes.'
Option 5: foreign excise taxes. Excise taxes are domestic taxes applied to particular goods, not taxes imposed specifically on imports at the border, so this does not fit the description of taxes on products or services entering a country.
Taken together, the option that matches the description—taxes on imports that primarily raise prices—is tariffs, since they directly elevate the cost of imported goods at the border.

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Government taxes on products or services entering a country that primarily serve to raise prices on imports are known as

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