Protectionism
Economic policy of restricting imports to shield domestic industries from foreign competition.
What is Protectionism?
Protectionism refers to government policies that restrict international trade to protect domestic industries from foreign competition. Common tools include tariffs (import taxes), import quotas (limits on import volumes), subsidies to domestic producers, and non-tariff barriers such as complex regulations or licensing requirements. Proponents argue protectionism saves domestic jobs and preserves strategically important industries. Critics argue it raises prices for consumers, reduces economic efficiency, invites retaliation from trading partners, and ultimately harms the broader economy more than it helps the protected sectors.
Example
The US steel industry has historically benefited from protectionist measures. A 2002 study by the Peterson Institute found that US steel tariffs saved roughly 4,500 steel industry jobs — but at a cost of $400,000–$600,000 per job, borne by downstream industries and consumers who paid higher prices.
Source: Peterson Institute for International Economics — Steel and Aluminum Tariffs