GlossaryEN1 min readUpdated: Jun 22, 2026
Tariff Increases
When a new duty rate takes effect, importers must immediately recalculate their landed costs – tariff increases are government-mandated rises in the duty applied to one or more product categories.
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Source: https://www.wto.org/english/tratop_e/tariffs_e/tariffs_e.htm
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Definition & Explanation
When a new duty rate takes effect, importers must immediately recalculate their landed costs – tariff increases are government-mandated rises in the duty applied to one or more product categories. Governments use this instrument to protect domestic industries from cheaper foreign competition, generate revenue, or apply trade policy pressure, for example as a countermeasure in a bilateral dispute. Importers must either absorb the additional cost or pass it on to buyers; in price-sensitive supply chains, this frequently triggers a shift in sourcing to countries not subject to the higher rate. Tariff increases can be challenged through WTO dispute settlement or bilateral mechanisms, and should be distinguished from anti-dumping duties, which follow a separate investigative procedure under trade remedy law.
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