What are some of the negative effects that trade restrictions have on the U.S.?

Question

I am doing a debate in which I must promote free trade with India. And I can't find anything! So.....any ideas anyone?

Answer 1

A main argument against trade restrictions is that it is likely to mean a higher price for consumers to pay in the home (US) economy.

So say Indian companies had a competitive advantage in making cars, and could make them cheaper than US companies could. By the US Government placing quotas on the number of cars Indian companies can export to the USA (which they will do to protect US companies and US jobs) they are effectively pushing the price up for US consumers as there is only a limited supply of the cheaper cars and consequently many consumers will be forced to buy the more expensive US versions.

So the US industries and people with jobs in the industries that the tarriffs and quotas are placed on will benefit.

But US consumers with no link to the industry involved will suffer from protectionist measures through higher prices.

Hope this helps, I can't think of a specific example of what India exports to the US but I can image that the argument will indirectly apply to the outsourcing of service jobs from the US to India. (E.g. Call centre - US people lose jobs to people in India when call centres are moved there, but consumers of the companies which use call centres will benefit through lower bills as the cost of running call centres in India is far far lower than the US due to lower wages. Protectionist measures would not allow this to happen)