Suppose that the U.S. International Trade Commission determines that there is material injury to the U.S. furniture industry because of Brazilian subsidies on its exports of furniture to the United States. Which type of tariff will be applied on U.S. imports of Brazilian furniture?

Question

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Countervailing duties are imposed to counteract the effects of subsidies provided by foreign governments to their exporters. Therefore, if the U.S. International Trade Commission determined that Brazilian subsidies on furniture exports were causing material injury to the U.S. furniture industry, countervailing duties are likely to be applied on U.S. imports of Brazilian furniture to offset the subsidy and level the playing field for U.S. producers.

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