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.