Protectionism is the use of trade barriers — tariffs, quotas, subsidies, and non-tariff measures — to shield domestic industries from foreign competition. It is the opposite of free trade and is often justified by national security, infant industry, or employment concerns.
What Is Protectionism? Protectionism is a trade policy in which a government restricts international trade to protect domestic industries from foreign competition. The tools of protectionism include tariffs (taxes on imports), quotas (quantity limits), subsidies to domestic producers, and non-tariff barriers such as product standards, licensing requirements, and embargoes . Protectionism is the opposite of free trade . Key Takeaways Protectionism uses tariffs, quotas, subsidies, and non-tariff b