In the case of the United States, one of their reasons too is for security purposes: “increasingly restrictive import requirements imposed by the United States for security purposes”. This action however was being questioned by the other countries and the World Trade Organization (WTO).
Trade barriers are necessary in some cases like putting embargo on Chinese milk products by different countries during the melanin scare for health purposes. However there are circumstances when it harms global trade as a whole. Big and important countries which are worlds leading importers and exporters could largely affect all other countries if they impose barriers of trade in their countries: “are worrying signs that politicians in Europe and the United States are prepared to put in place policies to shield their domestic industries.”
If the countries such as United States of America imposes more strict requirements for their imports then it would mean that the foreign country exporting their goods to the United States would have to pay more to trade as it would cost money to prove that their products are safe and follows the measurements the United States requires.
If the United States applies strict measurements on their imports then it means that the price of the world supply would be more expensive from P1 to P2. A more expensive world supply could lead to the importers to produce less goods/services. There would be a shift on the supply curve, from S1 to S2. This means higher prices and lower quantity of goods for consumers. This could lead to a fall in revenue which could then lead to the fall of that industry on that specific foreign country and therefore increase in unemployment. What the foreign importer country could do is to retaliate by also imposing stricter terms on the goods coming from the United States. This could then lead to a lot of countries retaliating therefore a chain reaction of countries selling their products at a more expensive price. The outcome would then be inflation and lesser choices of goods around the world.
In conclusion, it is indeed helpful for a country to impose protectionist barriers to protect their country either for safety measures or to protect infant industries. This is because protectionist barriers could make the imports more expensive than locally produced goods. However it is when these barriers are imposed on such absurd and obviously fake reasons that it can go all wrong. Protectionism could backfire on the country imposing it and could actually affect not just two countries which are the importer and exporter but also the other countries that exports or imports to the two countries involved, which could mean the whole world.
In the end, the prices of all goods and services are more expensive that could lead to inflation which could slow down the economic growth of all the countries. What countries could do, like the United States, is to present their valid reason for the imposition of stricter terms, so that the other countries would be able to understand and not take the action to be deceptive. If the government of the United States are really just concerned about security purposes then maybe, they could offer a cheaper way of scanning products that are imported into their country so that the importers are not affected as into the increase in the price of trading. This way, the exporting countries could still export their products in the United States, with a higher price but with a reasonable cost and with a reasonable explanation for the protectionist action.
Tariff is a term referring to tax levied on imported goods.
Quota is a quantitative limit on imports set by the importing country.
Subsidies are direct or indirect payment by the government to domestic producers.
VERS is when a foreign producer that limits the quantity of its exports voluntarily.