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Tariff Dividend

Definition

A Tariff Dividend is an economic concept representing the potential economic benefits or surplus generated for a nation by adjusting its tariffs or trade policies. It suggests that by optimizing tariffs, a country can stimulate domestic industries, increase revenue, or improve consumer welfare. While traditionally applied to physical goods and international trade agreements, the principle can be hypothetically extended to digital economies and cross-border digital service taxation. This dividend aims to create a net positive economic impact through strategic policy decisions.