An anti-dumping duty is a protective tariff that a country’s government imposes on foreign imports that it judges to be below fair market value.
To protect their economies, many countries impose duties on goods that they believe are being dumped in their national market; this is done on the grounds that these products could undermine local businesses and the local economy.
While the goal of anti-dumping duties is to preserve domestic jobs, these tariffs can also lead to higher prices for domestic consumers.
In the long term, anti-dumping duties may reduce international competition for domestic companies producing similar products.
In the US, the International Trade Commission (ITC), an independent government agency, has been tasked with imposing anti-dumping duties.
The World Trade Organization (WTO), the international organization dealing with the rules of trade between countries, also administers a set of international trade rules, including the international regulation of anti-dumping measures.
The term “discount rate” can refer to either the interest rate the Federal Reserve charges banks for short-term loans or the rate used to discount future cash flows in a discounted cash flow (DCF) analysis.