Antidumping Duty

A targeted tariff on imports sold below fair value, protecting a specific domestic industry from underpricing.

Also known as: AD/CVD, Antidumping and Countervailing Duties

What it is

Antidumping duties are tariffs imposed when foreign producers sell goods in the U.S. below fair value, injuring domestic industry. Countervailing duties offset foreign subsidies. Commerce and the International Trade Commission run the investigations.

What it does

AD/CVD orders raise import costs on specific products from specific countries, advantaging the U.S. petitioners that filed the case. Preliminary and final determinations are catalysts for the protected producers. It is narrower and more surgical than broad tariffs.

The evidence

Antidumping orders on imported steel, solar, and chemical products have supported the domestic petitioners that filed the cases.

Best for

Domestic producers in petitioning industries: NUE, STLD, FSLR (per case).

Pairs well with

tariff, section-232, buy-american

Use cautiously with

Cases are product- and country-specific; assuming a duty protects a whole sector overstates the reach.

Cautions

Investigations run months and can end in negative determinations with no duties.