During a recession, when consumers tend to purchase cheaper products, a specific tariff provides domestic producers a greater amount of protection against import-competing goods than other types of tariffs.

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During a recession, consumers often shift their purchases towards cheaper products. A specific tariff, which is a fixed fee per physical unit of the imported product, provides more protection for domestic producers against import-competing goods than ad valorem tariffs (which are based on the value of the goods) because the relative cost advantage of cheaper imported goods is reduced, making domestically produced goods more competitive.

During a Recession, When Consumers Tend to Purchase Cheaper Products