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Ad Valorem Tariff

   Also found in: Dictionary/thesaurus, Acronyms 0.01 sec.
Ad Valorem Tariff
A tax on an import calculated as a percentage of the value of the import. This contrasts with tariffs on the weight, size, or quantity of the import. Like all tariffs, ad valorem tariffs are controversial, with opponents arguing that they are economically inefficient. See also: Ad Valorem Tax.


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With his decision to impose a maximum of 30% ad valorem tariffs as opposed to the 40% requested by the steel lobby, the President split the difference between free trade and total protectionism.
Would it make sense to use an ad valorem tariff rather than a specific one?
 
 
 
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