What common feature do tariffs and quotas share?

Tariffs and quotas are both tools used in international trade policy to regulate the flow of goods between countries. The primary common feature they share is that they both restrict foreign goods entering a domestic market.

By imposing tariffs, a country levies a tax on imported goods, which effectively raises the price of those goods and makes them less competitive compared to domestic products. Quotas, on the other hand, set a physical limit on the quantity of a specific good that can be imported during a given time period. This limited access directly reduces the volume of foreign products available to consumers.

The restriction of foreign goods through both tariffs and quotas is aimed at protecting domestic industries from foreign competition, thereby supporting local producers. This aspect reinforces the protectionist approach many countries take to bolster their own economies.