Tariff-based trade barrier
Direct protectionist measures to restrict foreign trade are understood as tariff trade barriers .
These direct trade restrictions include:
- All sorts of duties
- Levies ( minimum prices )
- Export subsidies
- Excise taxes
They are used to restrict competition of foreign trade and the foreclosure of their own economy and thus primarily to protect national companies. The protection of young industries ( infant industries ) is of particular importance in order to build up competitive industries through protectionism, which in the initial stage would not withstand the competitive pressure of the world market . They also serve as a source of income for the state , to compensate for balance of payments deficits or to promote domestic production (substitution of imported products with domestic products).