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American Selling Price

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American Selling Price
The way a tariff was calculated under the Fordney-McCumber Act of 1922. That is, the American selling price indicated that a tariff on an import into the United States would be calculated according to the price of a similar, American-made good rather than the manufacturer's price. For example, the tariff on a particular good might be 50% of a good's price. If a British company made that good for $20 and an American company for $50, the American selling price standard would put the tariff on the British-made good at $25 (50% of $50) rather than $10 (50% of $20). The American selling price standard, among other provisions of the Fordney-McCumber Act, is believed to have harmed the American economy.


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Congress had put in place an American Selling Price (ASP) tariff system in 1909, replacing ad valorem tariffs based on invoice prices by tariffs based on what the imported commodity would cost to produce in America.
In centrally-planned economies in general, output prices (roughly equivalent to American selling price or revenue), as well as input prices (roughly equivalent to expenses for labor, materials, and so on) are assigned by the government, ostensibly as economic normatives.
The North American Selling Prices Index declined four points to 29.
 
 
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