Glossary Anti-Dumping Duty (AD)

Anti-Dumping Duty (AD) is a tariff imposed on imported goods when their prices are lower than the production costs in the exporting country, effectively adjusting the prices to a reasonable level. When manufacturers from other countries dump their products into the U.S. market at artificially low prices, distorting competition or harming U.S. domestic industries, the U.S. government may impose AD on those products. The purpose is to prevent foreign manufacturers from further competing in the U.S. market. AD is a form of protectionism and is used not only by the U.S. but also by other countries.