A tariff on imported goods designed to offset the domestic price effect of foreign export subsidies is call a countervailing duty (CVD)

Question

Quizplus · Accepted Answer

This statement is true. A countervailing duty (CVD) is a tariff imposed on imported goods to counteract the negative effects of foreign government subsidies, which may enable foreign producers to sell their products at artificially low prices, thus posing a threat to domestic producers in the importing country. CVDs are designed to ensure that the prices of imported goods more accurately reflect their true cost of production, and to provide a level playing field for domestic producers.

A Tariff on Imported Goods Designed to Offset the Domestic