Trade protectionism. Trade protectionism is how countries raise tariffs and reduce imports to protect their domestic industries. Trade protection is the deliberate attempt to limit imports by putting up barriers to trade. Despite the arguments in favor of free trade and increasing trade openness, protectionism is still widely practiced.In economics, protectionism is the economic policy of restraining trade between states (countries) through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations.