ANTI-DUMPING DUTY

A protectionist tariff that a local government dictate on foreign imports which is assessed to have a price beneath the fair market value. In the context of the United States, the anti-dumping duties are implemented by the Department of Commerce and usually exceed 100%. They are activated when a foreign company is selling a product which is way below the cost of its production. The reason behind the anti-dumping duties is to preserve domestic jobs, although there are critics who argue that it will result to the decrease of competitiveness among domestic company producing the same goods and also to price increase for domestic consumers.

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