Description: Tariffs are taxes on imports, making foreign products more expensive.

Examples: U.S. tariffs on steel, China’s tariffs on U.S. goods.

Purpose: To protect local businesses by making foreign goods pricier.

Effects: Consumers pay higher prices, and foreign businesses struggle.

Removing Trade Barriers: If tariffs were removed, products would be cheaper, but local businesses might suffer.

Description: Quotas limit the amount of a specific product that can be imported.

Examples: The U.S. has a sugar import quota, and the EU has quotas for certain agricultural products.

Purpose: To control supply and protect local industries from too much foreign competition.

Effects: Limits variety and may cause price increases for consumers.

Removing Trade Barriers: If quotas were removed, more products would be available, lowering prices but affecting local industries.

Description: Subsidies are government payments to local businesses to help them compete against foreign products.

Examples: The U.S. subsidies for farmers and EU subsidies for Airbus.

Purpose: To help local businesses compete with cheaper foreign goods.

Effects: Can create unfair competition, making foreign goods more expensive.

Removing Trade Barriers: If subsidies were removed, it might hurt local businesses but make the market more competitive.