What are trade remedies?
Trade remedies, also called trade defence instruments, are measures that let a country add duties or quotas on top of normal tariffs when imports are unfairly priced, subsidised or surging. They are allowed under World Trade Organization rules and usually target specific products from specific countries, sometimes even specific producers.
Core principle: Trade remedies can add double- or even triple-digit percentages to duty on a product overnight. Monitoring them is part of sourcing, not just customs.
The three types
Anti-dumping duties
What it is: Imposed when exporters sell below their normal home-market price or below cost, and this injures the domestic industry.
Why it matters: The most frequently used remedy, often at producer-specific rates.
Countervailing (anti-subsidy) duties
What it is: Offset subsidies that foreign governments give their producers.
Why it matters: Often imposed alongside anti-dumping duties on the same goods.
Safeguards
What it is: Temporary duties or quotas when a sudden surge of imports seriously harms an industry, whether or not trade is unfair.
Why it matters: Apply to all origins, often through tariff-rate quotas.
How investigations work
| EU | US | |
|---|---|---|
| Who investigates | European Commission (DG Trade) | Department of Commerce (dumping or subsidy) and US International Trade Commission (injury) |
| Provisional duties | Normally within 7–8 months of initiation | After preliminary determinations |
| Definitive duties | Within 14 months at the latest | After final determinations by both agencies |
| Duration | 5 years, extendable after an expiry review | Reviewed every 5 years (sunset review) |
Example: In October 2024 the EU imposed definitive countervailing duties on battery electric vehicles from China, at rates from 7.8% to 35.3% depending on the producer. These come on top of the standard 10% EU car duty and apply for five years.
What importers should do
- Check whether your HS codes and origins are subject to measures, using TARIC in the EU or the CBP and Commerce AD/CVD databases in the US.
- Follow new investigations, because duties can apply provisionally within months.
- Make sure your origin determination is solid. Circumvention through minor processing in a third country is investigated and penalised.
- Diversify suppliers across countries to limit exposure.
- Take part in investigations as an interested party when your business is affected.
Frequently asked questions
Who pays anti-dumping duties?
The importer pays them to customs when goods are released, on top of normal duty.
Can anti-dumping duties apply retroactively?
In some cases, yes. Both the EU and US can apply duties to imports made shortly before measures, under specific conditions.
How can I find out if my product is affected?
In the EU, check TARIC for your code and origin. In the US, check CBP’s AD/CVD messages and Commerce case lists, or ask your customs broker.
Official sources: EU anti-dumping measures · EU duties on Chinese BEVs.
