To assess overall protection levels correctly, then, one must measure the combined effect of ad valorem tariffs
and specific tariffs.
They could boost the customs valuation of these goods, inflating ad valorem tariffs
. One change would ban the use of the 'first sale for export' for valuations, where importers declare the price a foreign exporter paid to a local supplier before shipping the goods to Europe.
Ad valorem tariffs
of 15.4%, 8.5% and 10.9%, respectively, will be applied to these volumes.
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.
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.
Because most duties reflect a set percentage of that price, these ad valorem tariffs
will rise according to the official customs valuation of goods.