Tariffs

No, a quota is not a tariff. In the international trade context, a quota is a limit on the quantity of a particular good or product that can be imported into a nation. Quotas can be country-specific or global in scope. Tariffs, on the other hand, are a tax on goods or products entering a country. Generally, there is no limit to the quantity of products that can be imported under a tariff, as long as the tariff is paid for each item.

An Import tariff rate quota is a combination of tariffs and quotas. A tariff rate quota (TRQ) applies to goods at a specific (low) rate up to a predetermined quota amount. Once the quota amount of the goods has been imported, the tariff rate increases to a higher amount. In other words, goods can be imported at a low tariff rate until the quote amount has been reached, at which point the tariff rate increases substantially.

Tariffs are taxes that governments place on imported goods of a specific type. Quotas are import limits that prevent more than a set amount of a specific good from being imported into a country. An embargo is a ban on the trade of a particular good, category of good, or with a specific country. The three types of protective measures may act in concert with one another or overlap in specific situations.