Protectionists

Protectionists are advocates of protectionism, a policy approach that seeks to shield domestic industries from foreign competition through trade barriers and subsidies. The main instruments include tariffs on imports, import quotas, export restraints, subsidies for domestic firms, and regulatory barriers that raise the cost or limit entry of foreign goods. Governments may also use procurement rules or standards that favor domestic products.

Proponents justify protectionism on grounds of preserving jobs, nurturing infant industries, ensuring national security, and reducing vulnerability to external shocks or trade imbalances. They argue that tariffs can raise domestic employment, stabilise prices, and give strategic sectors time to mature.

Critics contend that protectionism raises prices for consumers, reduces choice and economic efficiency, invites retaliation, and often damages overall welfare. The benefits, when present, are controversial and can be offset by higher costs elsewhere in the economy. The net effect depends on a country’s size, industry structure, and the policy design.

Historically, protectionism has its roots in mercantilist thought and rose in the interwar period. The postwar era saw a broad move toward liberalization under the GATT and later the WTO, though many economies continue to use targeted protectionist measures in particular sectors. Notable episodes include the Smoot-Hawley Tariff Act of 1930 and later steel and aluminum tariffs in the 2010s.