What is “Dumping”?

Dumping is when a company exports a product at a price below its normal value, which is often lower than what it charges in its home market. This unfair trade practice is used to gain market share by undercutting local competitors, and it can lead to economic harm in the importing country. While it can initially benefit consumers with lower prices, it may cause job losses and bankruptcy for local businesses. Countries may respond by imposing anti-dumping duties to protect their domestic industries.