Why countries trade (II)
Principles of Economics // Fall 2025
Prof. Santetti
marcio.santetti@emerson.edu
Protectionism in context
Protectionism in context
There are basically three arguments in support of using tariffs as a trade barrier:
The infant industry argument;
The anti-dumping argument;
The environmental protection argument.
Protectionism in context
[1]: The infant industry argument:
Block imports for a limited time;
Establish a mature industry;
Relax restrictions and compete internationally.
Protectionism in context
[1]: The infant industry argument:
Protectionism in context
[1]: The infant industry argument:
- How to do?
Protectionism in context
[2]: The anti-dumping argument:
- What does dumping mean?
- How do tariffs correct for dumping?
- Predatory pricing strategies.
Protectionism in context
[2]: The anti-dumping argument:
Protectionism in context
[3]: The environmental protection argument:
- Strict vs. lax environmental regulations.
Before we move on…
The current tariff context
The current tariff context
Tracking Trump’s tariffs and other trade actions (Brookings Institute)