EU tariff targets subsidized low prices as unfair trade

Steps:

• Identify the tariff's basis: low Chinese solar panel prices from government subsidies.
• Recall protectionism arguments: anti-dumping counters sales below fair value due to subsidies.
• Link subsidies to dumping: they enable below-cost pricing, harming EU producers.
• Rule out other arguments: none fit subsidy-driven unfair pricing.

Why A is correct:

• Anti-dumping argument, per WTO rules, imposes tariffs on imports sold below normal value (e.g., via subsidies) to prevent market distortion.

Why the others are wrong:

• B: Infant industry protects emerging domestic sectors to foster growth, not foreign subsidies.
• C: Strategic industry safeguards vital sectors like defense for national security, irrelevant here.
• D: Sunset industry aids declining domestic industries in transition, not addressing foreign dumping.

Final answer: A