**Commentary** **What is Protectionism?** - Protectionism refers to intervention in the form of government policies that restrict and regulate international trade in order to help domestic industries. - This can appear in the form of tariffs, import quotas, product standards, subsidies, or complete embargoes. **Why is it implemented?** - With the aim of improving economic activity within a domestic setting - For quality and safety concerns over imported items **Potential benefits** - Protects against the negative impacts of [free trade](https://www.economicshelp.org/trade2/arguments-against-free-trade/) - Protects certain industries and safeguards jobs. One example of this is Trump imposing a tariff on [steel imports](https://en.wikipedia.org/wiki/Trump_tariffs) to protect jobs in the US steel industry. - Further, the ['Infant Industry Argument'](https://www.economicshelp.org/blog/glossary/infant-industry-argument/) states that developing countries are justified to put tariffs on imports if they are seeking to develop new industries and diversify their economy. - Raises government revenue - Protects against international competition - Environmental standards and regulations can be imposed on products, as well as benefiting the environment by reducing carbon emissions through discouraging imports **Opposition** Critics argue many of the potential benefits can be directly counteracted by the negatives: - Retaliation over protectionism can cause higher import/consumer prices - Lack of competition also can also lead to higher prices by domestic industries and lower quality - Higher prices may lead to lower overall demand, thus causing job losses - Those in favour of free trade generally oppose any [market intervention](https://www.economicshelp.org/trade2/benefits_free_trade/)