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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High,
CFP®, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Operations Manager
Molly R. Kelsh
Client Service Specialist
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
January/February 2026
Understanding Tariffs
Tariffs are taxes imposed by governments on imported or exported goods, primarily to regulate trade, protect domestic industries, or generate revenue. They play a crucial role in international economics, influencing prices, supply chains, and global relations. There are several key types of tariffs, each designed for specific objectives.
Ad Valorem the most common, is calculated as a percentage of the imported good's value. For instance, a 10% tariff on a $100 item adds $10, making it flexible with fluctuating prices.
Specific tariffs charge a fixed fee per unit, regardless of value— such as $5 per barrel of oil. This provides predictability but can disproportionately affect cheaper goods.
Compound tariffs combine both by applying a percentage plus a fixed amount, offering balanced protection.
Other variants include protective tariffs, which shield local producers from foreign competition by raising import costs, and revenue tariffs, aimed at funding government without restricting trade heavily. Prohibitive tariffs are extremely high, effectively banning imports to safeguard strategic sectors.
Overall, tariffs shape economic policies, but they can spark trade wars if misused.
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David P. McCabe, Nathaniel D. High, and Nicholas J. Over are Financial Planners with, and offer securities and investment advisory service through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
LPLE and LPL Financial are not affiliated with Centuria Financial Group.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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