Almost every trade barrier works as a tool to ensure a protectionism policy. Trade barriers aim to hike the prices of imported products in order to secure the domestic industry against fierce competition from foreign products. Some of the most common trade barriers are:
Tariffs: Taxes levied on products that are traded across borders are called tariffs. However, governments impose tariffs essentially on imports and not on exports. Two most popular types of tariffs are:
Subsidies: Subsidies work to foster export by providing financial assistance to locally-manufactured goods. Subsidies help to either sustain economic activities that face losses or reduce the net price of production.
Quotas: Import quotas are the trade limits set by the government to restrict the quantity of imports during a specified period of time.
Embargo: This is an extreme form of trade barrier. Embargoes prohibit import from a particular country as a part of the foreign policy. In the modern world, embargoes are imposed during wartimes or due to severe failure of diplomatic relations.