What is the purpose of an anti-dumping duty?

The purpose of an anti-dumping duty is to promote fair pricing in international trade. This type of duty is implemented by governments to protect domestic industries from foreign manufacturers that sell goods at prices lower than their normal value, often characterized as "dumping." By imposing these duties, governments aim to create a level playing field for domestic producers, allowing them to compete fairly against foreign products that could potentially undercut their prices due to unfair pricing practices. Anti-dumping measures help ensure that international trade practices are equitable and safeguard the economic interests of local manufacturers and the markets in which they operate.