Export tariff definition
An export tariff is a tax a government charges on goods sold to other countries.
An export tariff, also called an export duty, is a tax imposed by a government on domestic goods that are being sold abroad. Export tariffs can be charged as a percentage of the item’s value or as a fixed fee per unit.
What does an export tariff do?
Export tariffs are usually implemented to keep certain products from becoming too scarce or expensive in the domestic market.
For example, countries including Russia, China, Argentina and Kazakhstan have at various times implemented export taxes on grains in order to stabilize prices on the domestic market.
Does the US have any export tariffs?
Export duties are explicitly prohibited by the US Constitution. Article I, Section 9, Clause 5 reads: “No Tax or Duty shall be laid on Articles exported from any State.” The Supreme Court has interpreted this clause to ban any tax that directly burdens the process of exporting goods to foreign countries.
Keep exploring
- What are tariffs and how do they work? - Tariffs are taxes paid by firms importing goods internationally. They are used as a tool to control global trade.
- What are the top US exports to China? - Soybeans were the nation’s top export to China in 2022, making up 11.6% of overall export value.
- What is the average US tariff rate overall?
- How a US-China trade war might impact individual states - The impact of the tariff battle between the United States and China will vary at the state level, as each state has a different trading relationship with China.
