Why do governments sometimes create trade barriers to discourage imports from other countries ?

Question

another question from my bisuness class in highschool

Answer 1

Because it helps to protect that same industry in its own country.

For example, the US has sugar import tariffs, making imported sugar more expensive than domestically-grown sugar. Thus, people in the US are going to buy US-grown sugar, which keeps money in the wallets of US sugar producers and farmers.

Answer 2

To support the people who make the same product in the country doing the protecting; or lets say there is a product that doing without a domestic supply could be very dangerous in the event of war or domestic emergency. Let's say the US didn't want to loose the ability to get steel for Humvees. In that case the US Government would create a trade barrier against imported steel to force the price up for the import and allow the domestic producer to compete against foreign steel at a higher price. That would insure the survival of the domestic supplier and would insure a domestic supply in times of trouble. Look into the production of flat screen TVs and see how Japaneese manufacturers were able to corner the market buy selling below costs. After they ran the US manufacturers out of business they were able to raise the price to what ever they wanted. The US Government should have protected US flat screen manufacturers buy imposing a trade barrier.

Answer 3

to "protect" the local people and jobs in the country.
for example:

in the USA lets say product x is produced. because of the cost of land, labor & raw materials, it costs $100 per ton.

in another country, product x is produced for only $50 per ton (maybe because the foreign government subsidized it, because raw materials or labor are cheaper, etc.); even with shipping costs, it can get to the USA for only $75 per ton.

this is a problem because it will put the USA firms out of business and the people out of jobs. so folks (lobbyists?) in the USA convince the legislators to enact laws to put trade barriers in place to "save" the USA industry and all those jobs.

don't worry, lots of countries do it all the time.

Answer 4

To protect our own native industry and jobs from foreign competition.

Answer 5

Same old thing since time began; MONEY.