What is the difference between an antidumping duty and a tariff?

An antidumping duty and a tariff are two distinct forms of import protection used by governments to incentivize local production of goods and services. Both are legal tools used to regulate foreign trade, but the purpose and scope of each is different. A tariff is a tax imposed on imports and/or exports of goods and services. It is used by governments to raise revenue and protect domestic producers from foreign competition by raising the price of imported goods and services relative to their domestic equivalents. In Oregon, tariffs may be imposed on all imports from certain countries or products from certain countries. An antidumping duty is a tariff imposed on imports found by investigation to be sold at below fair market value, or “dumped” in a foreign market. An antidumping duty is intended to level the playing field so domestic producers can compete on equal terms with foreign exporters who benefit from selling goods at prices lower than those charged in their own markets. In Oregon, antidumping duties are enforced by the U.S. Department of Commerce, which investigates and determines whether imported goods are being sold at less than fair value. If it finds evidence of dumping, the Department can issue an antidumping order, which imposes a duty on imported goods to make the prices competitive with fair market value.

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What is the difference between an antidumping duty and a tariff?

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