Protectionism
a.k.a. Trade protectionism
Government policies that shield home industries from foreign competition, using tariffs, quotas and other…
In plain English
Government policies that shield home industries from foreign competition, using tariffs, quotas and other barriers.
Protectionism is a country putting a fence around its own businesses. It slaps tariffs on imports, sets quotas, or hands out subsidies so local firms do not have to compete on a level field with foreign ones.
Supporters say it protects jobs and strategic industries. Critics say it raises prices for consumers and invites retaliation that ends in a trade war. For currencies, protectionism usually means uncertainty, and markets hate uncertainty.
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