method of requiring consumers to subsidize producers. The subsidy is indirect, since consumers pay for it

through higher prices, rather than a direct government subsidy paid with money collected from taxpayers.

However, protectionism works like a subsidy, nonetheless. The American satirist Ambrose Bierce defined

“tariff” this way in his 1911 book, The Devil’s Dictionary: “Tariff, n. A scale of taxes on imports, designed to

protect the domestic producer against the greed of his consumer.”

The effect of protectionism on producers and consumers in the foreign country is complex. When a

government uses an import quota to impose partial protectionism, Brazilian sugar producers receive a lower

price for the sugar they sell in Brazil—but a higher price for the sugar they are allowed to export to the United

States. Notice that some of the burden of protectionism, paid by domestic consumers, ends up in the hands of
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