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NUISANCE TARIFF

A tariff so low that it costs the government more to collect it than the revenue it generates - in general, a tariff with no or minimal protective effect.

Derived from: Walter Goode: Dictionary of Trade Policy Terms, Fourth Edition, (Cambridge University Press/WTO, 2003), p.258

Related terms:

RESIDUAL TARIFFS - Used by some to describe the low tariffs on industrial products that are now the rule in developed economies. Some see them as “left-overs” from the Uruguay Round that now should be eliminated completely.

Source: Walter Goode: Dictionary of Trade Policy Terms, Fourth Edition, (Cambridge University Press/WTO, 2003), p.295