An import quota is a government-imposed limit on the quantity of a specific good that can be imported during a given period. Quotas restrict supply, raise domestic prices, and protect domestic producers — but they do not generate government revenue.
What Is an Import Quota? An import quota is a quantitative restriction on the volume or value of a particular good that can be imported into a country over a specified period. Unlike a tariff , which raises the price of imports through a tax, a quota directly limits the quantity available. Quotas are a common form of trade barrier and a key tool of protectionism . Key Takeaways An import quota is a physical limit on the quantity of a good that can be imported over a set period. Quotas restrict s