Injury analysis, 'price suppression' refers to what?

• A. Prices rising due to demand.
• B. Domestic price levels being pushed down by import competition.
• C. Tariff increases causing inflation.
• D. Domestic producers increasing prices to match imports.

Answer: (B)

Price suppression in injury analysis means the downward pressure on domestic price levels caused by import competition. When imports enter the market at competitive prices, domestic sellers often have to cut or hold prices down to protect market share, preventing prices from rising to normal levels or causing them to fall. This inward squeeze on domestic prices can injure the domestic industry by reducing revenues and profits, even if overall demand isn’t shrinking. It’s about imports dragging prices down, not about demand-driven price increases, tariff-induced inflation, or domestic producers raising prices to match imports.