What are tariffs?

Tariffs are one of the pillars of modern international trade. According to the World Trade Organization (WTO), they are taxes applied to goods and services that cross national borders, allowing countries to regulate the flow of products, balance trade and protect domestic industries. In Spain, their application is coordinated through the European Union, within a common framework that defines customs duties for imports and exports.

When an imported product crosses the border, the tariff is added to its base price, directly affecting the final cost paid by the consumer. This increase changes the competitiveness of the product in the local market and can, in turn, benefit domestic industries producing similar goods.

How do tariffs work and what are they used for?

Tariffs are not only a source of tax revenue, but also an economic policy tool used by governments to achieve specific objectives.

Their main purposes include:

• Protecting domestic industry: by making imports more expensive, tariffs encourage the purchase of locally produced goods, helping preserve jobs and strategic industries such as steel and technology.
• Generating public revenue: although their importance as a source of government revenue has declined, tariffs still provide significant resources for the state.
• International negotiation tool: the threat of imposing a tariff or the promise of removing one can be used as leverage in trade and diplomatic agreements.
• Correcting trade imbalances: by increasing the cost of imported goods, governments may seek to reduce dependence on foreign products and improve the balance of payments.

The tariff mechanism begins with the government setting a customs duty that is charged to the importer when the goods enter the country. This cost is usually passed on to the final buyer, creating a chain effect on prices and margins.

In the short term, consumers may see an increase in the price of imported products or goods that rely on foreign components. In the medium and long term, however, the opposite effect may occur: protecting one sector can increase the cost of domestic inputs, reducing the competitiveness of other industries.

United States trade policy in 2025, including the doubling of tariffs on steel and aluminum, showed how these measures can generate international tensions and reshape economic alliances.

Types of tariffs in international trade

The global product classification system known as the Harmonized System determines the type of tariff applicable to each product. In the European Union, this classification is specified through the TARIC code, which regulates common customs duties and facilitates traceability at customs.

There are three main types of tariffs:

• Ad valorem tariff: calculated as a percentage of the product’s value. For example, a 10% tariff applied to a shipment of imported microchips or textiles.
• Specific tariff: sets a fixed amount per physical unit, such as weight or volume. It is often used to protect agricultural or manufacturing industries from international competition.
• Mixed tariff: combines the two previous methods and helps prevent importers from declaring artificially low values to reduce the amount payable.

Each type serves a different purpose. Countries use ad valorem tariffs for high value products and specific tariffs when they aim to stabilize domestic prices or protect vulnerable sectors.
Understanding these mechanisms is essential for professionals specializing in international trade, as it enables them to analyze cost structures and the regulatory impact on global competitiveness.

Practical examples of tariffs and their use in trade strategies

Tariffs play a key role in economic geopolitics. In 2025, the United States imposed a 50% tariff on imported steel and aluminum under Section 232, which allows measures to be introduced when imports are considered a risk to national security. At the same time, allied countries such as the United Kingdom were exempted after signing an Economic Prosperity Deal, showing how tariffs can be used as a tool of diplomatic pressure.

That same year, the European Union and the United States reached a trade agreement after months of tensions. Washington reduced tariffs on European exports from 30% to 15% in exchange for investment commitments and strategic purchases of liquefied natural gas.

These developments show that tariff decisions can trigger chain reactions, affecting both trading partners and third countries that subsequently reshape their alliances. This type of analysis forms part of the work of a trader, a professional who combines strategic vision, analytical skills and knowledge of global markets.

Key studies for understanding international trade

Understanding the role of tariffs requires a solid foundation in economic analysis and strategic management. According to a BBVA Research study, the relocation of value chains to nearby regions, a phenomenon known as nearshoring, is transforming international trade flows and benefiting countries with political stability and strong logistics capabilities.

The Spanish National Statistics Institute also publishes the Unit Value Indices for Foreign Trade, which make it possible to measure real changes in prices and volumes in Spanish exports and imports.
Mastering these tools is essential for professionals seeking strategic positions. According to Glassdoor, an international trade specialist earns an average salary of between €24,000 and €36,000 per year, while a trader with advanced education can earn more than €90,000 gross per year, according to LinkedIn data.

Programs such as the International MBA provide the perspective needed to interpret these indicators and understand how tariff policies are applied effectively. In this context, understanding the role of an International MBA helps explain how tariff decisions affect global business strategies. Those seeking to take on global leadership roles can find in the Global MBA an opportunity to develop a comprehensive perspective on how trade flows interact with corporate strategies and international regulatory frameworks.

Tariffs are an essential instrument of international trade. When applied effectively, they can help balance markets, protect key sectors and serve as a tool for economic and political negotiation. Understanding how they work, the different types that exist and their impact on the global economy is essential for professionals in the sector. With the support of official sources such as the INE and studies from BBVA Research, together with advanced programs such as the International MBA and Global MBA, professionals can develop a strategic understanding of international trade and lead successfully in an increasingly interconnected environment.