Protective tariffs

Definition

Protective tariffs are taxes imposed on imported goods to make them more expensive than similar domestic products, thereby protecting local industries from foreign competition. These tariffs aim to encourage consumers to buy domestically produced items by increasing the cost of foreign alternatives.

Related terms

Import Quotas: These are restrictions set by a country on the amount or value of goods that can be imported over a specified period of time.

Subsidies:

Financial assistance provided by the government to domestic industries to help them remain competitive against foreign imports.

Trade Barriers:

Measures implemented by countries to restrict international trade and protect their internal markets, which can include tariffs, quotas, and subsidies