What does protectionism mean?
Protectionism is the practice of protecting businesses, industries, or workers within a country from foreign competition. Governments commonly use tariffs, import quotas, subsidies, and regulatory barriers to make imported goods more expensive or less available. The term also covers policies that give domestic firms preferential treatment, even when they do not impose a direct restriction on imports. Protectionism is frequently debated in economics because it may give a young or strategically important industry time to develop, while potentially raising prices, reducing consumer choice, inviting retaliation, and making domestic exporters less competitive. It is closely associated with trade disputes and economic nationalism. The related adjective “protectionist” describes either a person who favours such policies or an economic system, policy, or measure based on protecting domestic interests from outside competition.
nounProtectionism is a national economic policy of protecting domestic industries from foreign competition, typically through tariffs, import quotas, or other trade restrictions.
- The economic policy or practice of protecting domestic industries from foreign competition through tariffs, quotas, subsidies, or other restrictions on international trade.
"The government adopted protectionism to shield struggling domestic manufacturers from cheaper overseas competitors."
"Heavy tariffs on imported steel are a form of protectionism that may provoke retaliation from trading partners."
"Economic historians often debate whether strategic protectionism helped early industrial economies develop."
The plural is uncommon because the word normally refers to a single national economic approach or to the general policy in the abstract.
"Historians have compared the protectionisms of different industrial economies."
Protectionism can protect a new industry for a time, but the same walls that nurture domestic businesses can also make them less competitive abroad.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does protectionism come from?
Protectionism was formed in the 19th century from “protection” and the suffix “-ism,” meaning a system or policy characterized by protection. “Protection” comes through Old French from Latin protectio, a noun derived from protegere, meaning “to cover, shield, or protect.” That Latin verb combines the prefix pro-, conveying forwardness or protection, with tegere, meaning “to cover.” Modern cognates and related forms include “protect,” “protective,” and “protector.”
Related word forms
How protectionism is actually used
The term is most often used in discussions of international trade and economic policy. It can be neutral when identifying a policy, but it often carries a critical connotation because trade restrictions may harm consumers, provoke retaliation, or reduce competition.