A tariff, sometimes known as an import tax, is the most prevalent trade barrier. Due to tariffs, imported items are more expensive than domestic ones (good produced at home).
Trade limitations are imposed by the government on global trade. The theory of comparative advantage claims that trade restrictions harm the global economy and reduce overall economic efficiency.
Trade restrictions include tariffs (taxes) on imports (and occasionally exports) as well as non-tariff trade restrictions including import quotas, domestic industry subsidies, trade embargoes with specific nations (often due to geopolitical concerns), and licenses to import items into the economy.
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