What do import quotas do?

Import quotas are government-imposed limits on the quantity or value of a specific product that can be brought into a country during a given time period. By restricting the volume of imports, quotas are intended to protect domestic industries from foreign competition by preventing excessive foreign goods from flooding the market. This can help maintain higher prices for local producers and safeguard jobs within the domestic industry.

Understanding the purpose of import quotas highlights their role as a form of trade protectionism, which is primarily aimed at limiting foreign competition rather than encouraging the import of all items or eliminating tariffs. While they can affect competition among local producers by reducing the availability of foreign goods, that is more of an indirect effect rather than a primary function of import quotas.