An additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy is called a(n) ________.

Question

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A countervailing duty is designed to counteract the effect of subsidies given to a foreign producer. It is imposed on the foreign product to level the playing field for domestic producers who do not receive such subsidies. Ad valorem duty is a percentage of the value of the imported product, and dumping duty is imposed when a foreign producer sells goods at a lower price than their cost of production. Compounded tariff is not a recognized term in international trade.

An Additional Tariff Placed on an Imported Product That a Nation