ieExplains: What are tariffs and how do they affect me?

In the past few months, it’s become a word associated with the United States, but tariffs are not just limited to the vagaries of the Trump administration.

"As a member of the EU, we apply the Common Customs Tariff (CCT) for imports from non-EU countries and benefit from tariff-free trade with other EU members."

Put simply, a tariff is a tax on imported or exported goods. There is little difference between a conventional tax and a tariff as far as we, as consumers, are concerned. 

Trump recently described the EU Value Added Tax (VAT) as a form of tariff, so it appears it’s more of a case of “potaytoe/potahto” from his perspective.