• Explain protectionism and its three main forms

• Analyze protectionism through concepts of demand and supply, noting its effects on equilibrium

• Calculate the effects of trade barriers

When a government legislates policies to reduce or block international trade it is engaging in protectionism.

Protectionist policies often seek to shield domestic producers and domestic workers from foreign competition.

Protectionism takes three main forms: tariffs, import quotas, and nontariff barriers.

Recall from International Trade that tariffs are taxes that governments impose on imported goods and

services. This makes imports more expensive for consumers, discouraging imports. For example, in 2018,

President Trump increased tariffs on Chinese-manufactured goods by 2–25%, including TVs, monitors,

desktop PCs, smartwatches, and many other consumer goods. The intention behind the policy was to shelter
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