Close Navigation
Learn more about IBKR accounts

Protectionism

Trading Term

Protectionism is an economic policy aimed at shielding a country’s domestic industries from foreign competition. This is often achieved through the implementation of tariffs, which are taxes imposed on imported goods. By increasing the cost of imports, tariffs make foreign products less competitive compared to locally produced goods. This can encourage consumers to buy domestic products, thereby supporting local businesses and preserving jobs. However, while protectionism can benefit certain industries in the short term, it may lead to higher prices for consumers and potential trade wars, as other countries might retaliate with their own tariffs, affecting global trade dynamics.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.