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A canonical tag is a crucial HTML element that helps search engines understand the preferred version of a web page. When multiple URLs exist with identical or very similar content, using `rel=canonical` signals to search engines like Google which page is the original or most authoritative. This process, known as canonicalization, prevents duplicate content issues, which can negatively impact a website’s SEO. Implementing canonical tags properly ensures that search engines index and rank the desired page, consolidating ranking signals and improving search visibility.