A tariff is a tax on imported goods, while VAT (Value Added Tax) is a consumption tax on goods and services, levied at each stage of the supply chain, regardless of where the good or service is produced.
On Thursday, April 3, the U.S. President by Executive Order sent the world into disarray with tariffs on many countries. The stock markets worldwide are down with the U.S. Dow down over 1500 pts. Will this order have the intended effect to produce income, or will inflation increase? They often result in higher prices for consumers, in particular lower-income consumers. One of the expected effects will be to lower the GDP (Gross Domestic Product) and possibly lower the U.S. dollar. More to come.