trigger price(redirected from Trigger Price Mechanism)
A price at which an import causes the importing country automatically to impose a tariff or quota. For example, a country may have a law stating that if an import falls below $10 per unit, a tariff is imposed that results in the import becoming $13 per unit. Trigger prices are used when the importing country generally wishes to promote free trade but does not want importers to undercut domestic industry.
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The specific price of an imported item below which a quota or tariff will be put into effect. A trigger price is imposed to keep foreign competitors from undercutting prices charged by domestic companies in the domestic firm's home market.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.