Tariff

A tariff is a tax imposed on goods crossing a national border, or — more broadly — the legal instrument that establishes those taxes. In everyday usage, "tariff" and "duty" are often interchangeable, but with subtle distinctions:

• Tariff more often refers to the rate schedule itself or to a discretionary policy measure (e.g., "the new tariff on Chinese EVs")
• Duty more often refers to the specific tax owed on a given shipment (e.g., "the duty owed on this entry is $1,243")

The Harmonized Tariff Schedule of the United States (HTSUS) is the legal codification of U.S. import tariffs, published by the U.S. International Trade Commission. The HTSUS has two columns of base rates:

• Column 1 General — the MFN / NTR rate applied to most U.S. trading partners
• Column 1 Special — preferential rates under FTAs (USMCA, KORUS, etc.) and unilateral programs (GSP)
• Column 2 — the much higher non-NTR rate applied to a small set of countries

Tariffs serve four traditional policy purposes:

1. Revenue — Until the early 20th century, tariffs were the U.S. government's primary revenue source
2. Protection — Shielding domestic industries from foreign competition
3. Retaliation — Responding to unfair foreign trade practices (the modern Section 301 use)
4. National security — Securing supply chains for critical materials (Section 232)

Modern U.S. tariff policy increasingly uses statutory delegations to the President — the Trade Expansion Act of 1962 (Section 232), the Trade Act of 1974 (Sections 301 and 122), and the International Emergency Economic Powers Act (IEEPA) — to impose tariffs outside the HTSUS base rates. These tariffs apply through Chapter 99.