A tariff on imported energy in a small open economy affects production, income distribution, and generates revenue. The study looks at how this tariff impacts the economy producing two traded goods using imported energy and local resources. The tariff reduces energy-intensive output and domestic income but can increase payments to some local factors. Tariff revenue, not previously considered, increases with the tariff but at a decreasing rate. A simulation shows how these effects play out in the economy, including the optimal tariff for revenue generation.