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

Quizplus · Accepted Answer

Countervailing duties are imposed on imports for the purpose of offsetting subsidies provided by the exporting country. In this case, the U.S. International Trade Commission has determined that Brazilian subsidies on furniture exports are causing material injury to the U.S. furniture industry. Therefore, countervailing duties would be applied on U.S. imports of Brazilian furniture to offset the unfair advantage created by these subsidies.

Suppose That the U.S.International Trade Commission Determines