Research on the Causes of Supporting Trade Protectionism in Times of Economic Recession

Abstract

Trade protectionism has appeared many times in history during economic downturns. Free trade is believed to help economic growth, but governments often use tariffs and other barriers to protect local industries, keep jobs, and respond to political pressure in crises. Using a historical case study method with academic research, policy reports, and trade data, this study explores the reason protectionist policies serve as one of the main government policies during economic downturns, and uses a series of special periods, such as the Great Depression, the 2008 financial crisis, the US-China trade war, and the COVID-19 pandemic, as case studies to examines the government actions and economic conditions that led to protectionism in different crises. The findings demonstrate that protectionism can generate short-term economic economic benefits for countries and societies in the early stages of a crisis, but as policies are pursued over time, it can raise consumer costs, cause trade retaliation, and disrupt global supply chains, which can lead to long-term social problems. While it remains a powerful policy instrument, excessive reliance on protectionism can undermine global economic stability.