The concept of protectionism, as the word suggests, is an economic concept in which one protects parts of one's economy.
It can be anything from a few key firms to entire industrial branches. Protectionism is a branch of government policies that restrict international trade with the goal of assisting domestic industries.
This is usually done when a country wants to improve economic activity on the domestic scene or to save an industrial branch.
Protectionist tools like tariffs, subsidies, and product standards are mainly used by countries that have been outmaneuvered on the international scene, which has resulted in their jobs moving overseas, or simply that they’ve been forced to rely on foreign goods.
We’ll analyze the effects on the U.S. of the tariffs imposed by the Trump administration focusing on the effects on U.S. consumers, workers, companies, and the economy in general.
In the two first appendices, the punitive tariffs of the Trump administration are accounted for and discussed.
He wants to force the hands of American manufacturers and resurrect the large-scale steel and aluminum production on American soil.
As mentioned in the first assignment, tariffs are often used for short-term recovery situations or to build up a new industry in a developing country. This isn’t the case with the former U.S. President and his administration's use of tariffs.