Countervailing Duties

Countervailing duties are tariffs imposed by a country on imported goods that have received unfair government subsidies in their home country. These subsidies can make the exported products cheaper, giving them an unfair advantage in the market. The purpose of countervailing duties is to level the playing field for domestic producers by offsetting the benefits of such subsidies, ensuring fair competition. Essentially, they act as a corrective measure to prevent foreign subsidized goods from harming local industries and to maintain a balanced trading environment.