Tariffs can take the form of an export tariff, a transit tariff, or an import tariff.
Tariffs protect domestic producers because they raise the cost of imports relative to domestically produced goods.
Tariffs also generate government revenue. Less-developed nations impose import and export tariffs but tend to reduce them as it generates more revenue from taxes on income, capital gains, and other economic activities.
Drawbacks of tariffs include making domestic producers less competitive and less efficient and increasing consumer prices.