Tariffs

Definition ∞ Tariffs are taxes levied by a government on imported goods and services. They are typically imposed to protect domestic industries, generate revenue, or exert political pressure on other nations. Tariffs increase the cost of imported products, making them less competitive compared to domestically produced alternatives. They are a common tool in international trade policy.
Context ∞ In the context of digital economics, tariffs can contribute to broader macroeconomic shifts that indirectly influence cryptocurrency markets. Trade disputes involving tariffs can lead to global economic uncertainty, impacting investor risk appetite and capital allocation across various asset classes. Crypto news often examines the ripple effects of such policies on digital asset valuations and market stability.