A tariff is basically a tax that a government puts on goods coming from another country.So, if India sells something to the US — say a $100 shirt — and the US puts a 50% tariff, it means the importer in the US has to pay an extra $50 to the US government.
That makes the shirt cost $150 in the US instead of $100, which can make it harder for Indian goods to compete there.Think of it like an entry fee at the border for foreign products.
Higher tariffs = more expensive imports = more protection for local businesses, but also possible trade tensions.If local US companies can’t make that shirt for less than $150, then US consumers will still buy the imported one — but now they’ll have to pay the higher price (because of the tariff).
So:Imports become more expensive (due to tariff).
Local goods might still be expensive (because they can’t match low-cost imports).Consumers end up paying more no matter what.
That’s why tariffs are often called a hidden tax on consumers — they’re meant to protect local industries, but they can backfire if local production isn’t competitive.
