What is the purpose of an "anti-dumping duty"?

An anti-dumping duty serves to protect domestic industries from foreign competitors who sell their products at unfairly low prices, often referred to as "dumping." By imposing a tariff on these imported goods, the anti-dumping duty raises the cost of those goods in the domestic market, making it less tempting for consumers to choose them over local products. This is fundamentally aimed at ensuring fair competition and maintaining the viability of domestic manufacturing and production sectors. By discouraging dumping practices, the anti-dumping duty helps safeguard domestic jobs and promotes fair pricing dynamics within the marketplace.