peril point

(economics) A hypothetical limit beyond which a reduction in tariff protection would cause serious injury to a domestic industry.
(U.S.) U.S. legislation in 1949 that extended the Trade Agreements Act of 1934 required the Tariff Commission to establish such “peril points” for U.S. industries, and for the president to submit specific reasons to Congress if and when any U.S. tariff was reduced below those levels. This requirement, which was an important constraint on U.S. negotiating positions in early General Agreement on Tariffs and Trade (GATT) tariff-cutting Rounds, was eliminated by the Trade Expansion Act of 1962.

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