What is "countervailing duty"

n. 1 A duty levied on an imported article to offset the unfair price advantage it holds due to a subsidy paid to producers or exporters by the government of the exporting country if such imports cause or threaten injury to a domestic industry. 2 A duty or surtax levied on an imported article to offset an excise or inland revenue tax placed upon articles of the same class manufactured domestically.

n. a duty imposed to offset subsidies by foreign governments