Tariffs, also referred to as “duties,” are taxes levied on certain imported merchandise. Tariffs may be used as instruments of protectionism, national defense or as a means to raise government revenues. Customs enforcement in the U.S., including duty collection, are performed by U.S. Customs & Border Protection (CBP).
For importers, tariffs represent an additional cost of bringing products to market and often are ultimately included as part of the cost of goods sold (COGS). This inclusion affects financial statements and