Countervailing Duty

A Countervailing Duty (CVD) is a tariff imposed by a government on imported goods to offset subsidies that foreign governments provide to their exporters. This is done to level the playing field for domestic producers, ensuring they can compete fairly against cheaper imported products. Essentially, if a country believes that another country is selling goods at an unfairly low price due to government support, it may apply a CVD to raise the price of those imports, helping to protect local industries and jobs from unfair competition.