A key difference between a quota and a tariff is that

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A tariff is a tax on imported goods, which raises the price of the goods and can lead to a decrease in the quantity demanded. A quota, on the other hand, restricts the quantity of imported goods, which can create a price gap that benefits domestic importers. The government of the importing country gains revenue from a tariff, but with a quota, the revenue goes to the exporting country in the form of higher prices for the limited quantity of goods allowed to be imported. Therefore, the key difference between a quota and a tariff is the revenue generated, and how it is distributed.

A Key Difference Between a Quota and a Tariff Is