protectionism

/prəˌtɛkʃəˈnɪzəm/

When a government limits its trade with other countries, especially by taxing imported goods, it's called protectionism.

A country's protectionism restrains competition from foreign companies. In other words, it may cost more for a US company to make a t-shirt than a Chinese company, but if the US's protectionism means a high tax on the Chinese t-shirts (making them more expensive to US buyers), they won't threaten the American company's business in the same way. Quotas and regulations are other tools of protectionism. Protectionism comes from the idea that the government is protecting its industries.

Definitions of protectionism

1. noun

   the policy of imposing duties or quotas on imports in order to protect home industries from overseas competition
   types:

   import barrier, trade barrier

   any regulation or policy that restricts international trade

   quota

   a limitation on imports

   embargo, trade embargo, trade stoppage

   a government order imposing a trade barrier

   type of:

   economic policy

   a government policy for maintaining economic growth and tax revenues