Question: what is the difference between a specific tariff and an ad valorem tariff?
Answer: A specific tariff is levied as a fixed charge per unit of imports. ... An ad valorem tariff is levied as a fixed percentage of the value of the commodity imported. "Ad valorem" is Latin for "on value" or "in proportion to the value." The US currently levies a 2.5% ad valorem tariff on imported automobiles.