countervailing duty
A 'countervailing duty' is a trade policy measure used to counteract the benefits foreign producers receive from subsidies, ensuring fair competition for domestic industries.
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Definition
C1International Trade
(technical)A tariff on imported goods to counteract subsidies provided to producers in the exporting country.
Example
- The government imposed a countervailing duty on steel imports to protect the local industry.
- Countervailing duties help level the playing field for domestic manufacturers.