👉 The tariff fluid, also known as the Tariff Rate Quota (TRQ), is a trade policy mechanism that allows for a certain quantity of a specific imported good to be purchased at a lower tariff rate, while the remaining quantity is subject to a higher, standard tariff. This approach aims to balance trade liberalization with protection for domestic industries by providing preferential access to a limited amount of goods at reduced rates. For instance, a country might permit 1,000 units of a product to be imported at 10% duty, with the rest facing a 25% tariff. This system helps manage imports, supports local producers, and can be adjusted to address specific economic or political objectives.
