What is meant by trade protectionism?

Trade protectionism refers to a set of policies or measures that governments implement to restrict international trade with the intention of protecting domestic industries from foreign competition. This can take various forms, such as tariffs, import quotas, and various regulations that make it more difficult or expensive for foreign goods to enter the domestic market. By imposing these restrictions, countries aim to safeguard local businesses, preserve jobs, and maintain economic stability.

The rationale behind protectionism is often based on the belief that domestic producers should be shielded from competition that might undercut their prices or market share, especially from countries with lower labor costs or different regulations. This approach can help nascent industries grow and become competitive before facing international competition. However, it can also lead to trade wars and reduce overall economic efficiency by limiting the variety of goods available to consumers and increasing prices.