Recent tariff policies by Donald Trump, implemented in 2025, have been a hot topic. But, the question is whether these policies embody protectionism or not?
Tariff List
What is protectionism?
It refers to government actions (like tariffs in this case) that protect and benefits local/domestic industries from foreign competition by making imported goods more expensive.
The aim is to protect American jobs and reduce U. S. trade deficit in order to make America Great Again. Well, there is nothing wrong in it. It’s a modern world which runs on the model of modern states, every nation wants to lead one or another way. But, yes, it does impact a lot (especially developing countries), as America is the power.
Is it protectionism?
Yes, these tariffs are a clear form of protectionism. I’m simple words, by increasing the cost of imported goods, consumer will look for local (American) made products. It will act as a shield for domestic industries.
However, the policies are not purely economic. For instance, tariffs on Canada and Mexico are partly justified by non-economic issues like illegal immigration and drug trafficking. These reasoning do add complexities, but it does not change the protectionist reason.
Furthermore, it does have it’s drawbacks. It can lead toward disrupted supply, high consumer prices, or maybe (surely) retaliation from importers/investors.
In the end, the long-term outcome remains uncertain. As the tariffs can ripple through both U.S. and global economics.