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The Impact of Trade Protection Policies on the Macroeconomy

In: Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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  • Yangyang Yu

    (Guangdong Guangya High School)

Abstract

Against the backdrop of the deepening development of economic globalization, trade protectionism has gradually risen and become an important destabilizing factor affecting global economic development. This paper focuses on the impact of trade protection policies on the macroeconomy. By combining theoretical analysis with case studies, this paper takes the EU’s anti-subsidy investigation on Chinese electric vehicles as a typical case to deeply analyze the impact mechanism of trade protection policies. The study found that the rise of trade protectionism stems from multiple factors such as economic, political, and social factors. Although trade protection policies have a stimulating effect on some macroeconomic indicators in the short term, they will undermine the competitiveness and innovation of the economy in the long run, hinder economic growth, undermine the international trade order, disrupt the industrial chain, and hurt employment. In the face of trade protectionism, the international community needs to strengthen cooperation and maintain the free trade order through multilateral consultations. Countries should also accelerate industrial upgrading and transformation to jointly promote the stable development of the global economy.

Suggested Citation

  • Yangyang Yu, 2025. "The Impact of Trade Protection Policies on the Macroeconomy," Advances in Economics, Business and Management Research, in: Maizaitulaidawati Md Husin (ed.), Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), pages 469-478, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-874-5_55
    DOI: 10.2991/978-94-6463-874-5_55
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