The Evolution of Protectionist Policy: A Historical and Analytical Review of Key Stages and Trends

Solodukhina Ol'ga Ivanovna ORCID: 0000-0002-8611-1320 PhD in Economics Associate Professor; Department of Customs and World Economy; Southwest State University 34 Pobedy Ave., block 299, Kursk, Central District, 305014, Russia, Kursk Region kuznecova_olja@mail.ru

Introduction

The evolution of the global economic system has necessitated a balanced interaction between the interests of various actors, including national economic complexes. This process involves constant updating and modification of economic strategies that take into account both internal and external factors that influence economic dynamics.

In the context of the deepening global systemic economic crisis, there is a reorientation of the strategic priorities of national economies to ensure their safe and sustainable functioning.

One of the elements of the instrumental framework for ensuring the safe and sustainable functioning of national economies can be a policy of protectionism.

In the modern world, there is a tendency towards the revival of protectionism, which is characterized by both periods of strengthening and weakening. Each new stage of protectionism is determined by various factors, which are based on the idea of supporting national industry.

The use of protectionist measures for strategic purposes has precedents in the history of various countries striving for economic prosperity.

Many States apply and continue to apply trade restrictions, such as tariffs and quotas, in order to support industries that they consider strategically important for long-term development and national security. These measures can also be used as a response to sanctions imposed by other countries.

To minimize potential challenges in the development and implementation of protectionist policies, it is necessary to conduct an in-depth analysis of the genesis and evolution of this type of policy. This approach will make it possible to integrate the accumulated knowledge into solving urgent problems and increase the effectiveness of protectionist measures.

In this regard, the purpose of the study is a comprehensive analysis of the key historical stages and trends in the formation and development of protectionism policy.

The subject of the study is the evolution of the policy of protectionism.

Research methods

The research is based on a methodological approach that involves the integration of theoretical and practical aspects that determine the direction and content of analytical activities. The following methodological approaches were used to achieve the purpose of the study:

1. The analysis of scientific literature, which made it possible to systematize and summarize existing approaches to the formation and implementation of protectionist policies.
2. A descriptive method for a detailed description of the conceptual foundations of protectionist policy.
3. Historical and documentary analysis for the critical study of historical data, archival documents and primary sources in the field of the formation and development of theoretical approaches and the formation of the instrumental base of the policy of protectionism. The works of such authors as F. Liszt, A. Smith, A. Serra, T. Man, F. V. von Hornick are analyzed.

The research has a theoretical focus and is an analytical review of concepts applicable to the problem under study. This work provides a theoretical basis for subsequent empirical research and the development of practical solutions in the field of formation and implementation of the concept of protectionism policy.

The main part

The policy of protectionism is a strategic course of the state's economic policy aimed at protecting and stimulating national production, as well as at the formation and implementation of a foreign trade strategy. This type of policy is implemented through the application of a set of measures, including tariff and non-tariff instruments for regulating foreign economic activity, in order to create favorable conditions for the development of domestic industries and minimize the negative impact of international competition on the country's economy.

The fundamental foundations of the policy of protectionism are laid in the works of mercantilist thinkers. Adam Smith considered mercantilism and protectionism as identical phenomena. Since the 1840s, these terms have been used interchangeably in economics and political science.

In the 15th century, the first elements of protectionist economic policy began to take shape in a number of European states, including England and the Netherlands. This process took place in conditions when agriculture occupied a dominant position in the structure of the economy of these countries.

In this historical period, the policy of protectionism is a set of measures taken by government agencies to protect and support national interests through the use of the most effective tools for economic development.

In the 15th century, legislation was passed in Great Britain aimed at stimulating national shipbuilding and navigation. The merchant fleet was actively developing, and in 1559 and 1563, coasting was declared the exclusive right of English ships.

In accordance with the Cromwell Navigation Act, which was subsequently amended in 1660 and 1665, import duties on goods imported by foreign ships were almost doubled. These measures contributed to the implementation of the policy of protectionism in England, which in turn led to its success and leadership in the global economy for several centuries.

At the beginning of the XVI century. There was a religious and intellectual awakening in Europe caused by the Reformation and Protestantism. These movements, associated with the names of Erasmus of Rotterdam and Martin Luther, gave a powerful impetus to the ideas of individualism and personal freedom. They also played an important role in the development of concepts of property and contractual rights, which in turn led to the growth of trade and free exchange.

Before the advent of these movements, the Pope held a dominant position in religion and could interfere in worldly affairs. With the rise of Protestantism, special attention was paid to the monetary aspect of life, and an attempt was made to limit the Pope's power only to religious matters and prevent his interference in economic and political affairs.

Even the international position of the church has been questioned as a result of the creation of national churches. For example, in England, Henry VIII seized church property and founded the Anglican Church, and he became its spiritual head.

The Renaissance emphasized the importance of humanism, putting human interests and well-being first. This contradicted the medieval theological concept that happiness in heaven was considered more important than worldly well-being. Humanists argued that happiness on earth is paramount compared to the promise of enjoyment in the afterlife.

The decline of the feudal system led to the development of mercantilism, since feudalism was based on self-sufficiency, agrarian production and the absence of exchange relations. The peasants, who were obliged to work in the fields of landlords and participate in military operations, worked at the local level to provide themselves with food, since there was no organized production and commercial crops were not in demand.

In the era of mercantilism (XVI–XVII centuries), more than 2000 economic works were published, in which almost all the analytical concepts used by Adam Smith in his work "An investigation into the Nature and Causes of the Wealth of Nations" ^[1] (1776) were developed or touched upon.

Most of the works that are traditionally attributed to mercantilist literature were created in Britain in the 1620s. The most famous authors who developed the English system of mercantilism were Gerard de Malines (1585-1641) and Thomas Man (1571-1641).

A systematic and consistent explanation of the trade balance was presented in Thomas Man's work "England's Treasures through Foreign Trade", also known as "and the Balance of our Foreign Trade as a Regulator of our Wealth" ^[2], which was written in the 1620s and published in 1664. In this work, foreign trade is considered as the basis of the trade balance. In his opinion, the following rule should have become the fundamental principle of international trade: "Exporting more than importing annually" ^[3]. He was a staunch advocate of nationalism and strong government.

Thomas Man believed that economic prosperity could be achieved through the accumulation of wealth. To do this, he proposed high import duties on goods that could be produced domestically, and moderate duties on exports. This concept was later developed by Josiah Child (c. 1630/31-1699).

Antonio Serra, in his 1613 treatise "A Brief Treatise on the Reasons that can make there a lot of Gold and silver in kingdoms where there are no mines," develops the ideas of mercantilism ("A Brief Treatise on the Causes which can make Gold and' Silver Abound in Kingdoms where there are no Mines») ^[4]. He proposed an original approach to assessing the wealth of cities, based on an analysis of the number of professions represented in a locality — the more specialization in economics, the higher its added value.

French authors made a significant contribution to the development of mercantilist doctrine in 17th-century France.

Antoine de Montcretien (c. 1575-1621) is considered one of the founders of mercantilism and the author of The Treatise on Political Economy ^[5] (1615), where he outlined his concept of economic policy. Moncretien believed that for the successful development of the national economy, it was necessary to limit imports, stimulating domestic production and creating state-owned manufactories to replace imported goods.

Antoine de Montcretien coined the term "political economy", which later became fundamental in economics. In his opinion, political economy is a set of practical rules governing the economic activity of a country.

Jean Baptiste Colbert (1651-1690), a representative of French mercantilism, pursued a policy in 1661-1683 that contributed to the development of France in the political, economic and military spheres.

French mercantilism, known as Colbertism, has become an integral part of economic thought. Colbert created a system of protectionism aimed at replacing imports and increasing the competitiveness of French goods in foreign markets. This system included the following measures to protect the national industry:

- high customs duties on the export of raw materials and the import of finished products;

- creation of large "royal workshops" (manufactories);

- inviting foreign specialists to develop domestic production;

- strict quality control of products and technological processes.

Jean–Baptiste Colbert, as Minister of Finance of France, carried out reforms, thanks to which the French were able to surpass their predecessors in one generation in the production of mirrors, glass, silk and fine fabrics. However, these successes also had negative consequences.: They have led to a deterioration of agriculture in France.

Colbertism became an important stage in the formation of mercantilist economic doctrine and had a significant impact on the subsequent development of economic policy not only in France, but also in other European countries.

In 17th-century Russia, at the stage of the formation of the first private industrial enterprises, a policy was developed and implemented aimed at supporting domestic entrepreneurs, in particular merchants, and protecting the domestic market from foreign competition. These measures were part of the State's economic strategy aimed at stimulating national production and strengthening the country's economic independence.

The Trade Charter of 1653 ^[6], approved with the support of Tsar Alexei Mikhailovich, included provisions on increased customs duties for foreign entrepreneurs, as well as restrictions on the import and distribution of certain categories of goods. These measures were aimed at creating favorable conditions for the development of domestic trade and industry, minimizing the negative impact of external economic factors.

The protectionist policy remained relevant in subsequent historical periods. During the reign of Peter the Great, who advocated active state regulation of economic processes, additional measures were introduced to support national industrial sectors. In particular, the organization of manufactories was initiated, the mining and metallurgical industries developed, and the creation of new production facilities was stimulated.

The Austrian lawyer and scientist Philipp Wilhelm von Hornick in his work "Austria as a whole, if she only wants to" (1684) outlined in detail the principles of mercantilism ^[7]:

- the involvement of all land resources of the state in agricultural activities, extraction and processing of natural resources;

- the use of all raw materials found in the country for domestic production, since finished products have a higher value than raw materials.;

- encouraging the growth of the working-age population;

- ban on the export of gold and silver;

- restriction of import of foreign goods;

- purchase of imported goods, if necessary, directly, exchanging them for domestic goods instead of gold and silver;

- the maximum restriction on the import of raw materials that can be processed in the country of origin;

- constant search for opportunities to sell the country's surplus industrial goods to foreigners for gold and silver;

- prohibition of imports if such goods are produced in sufficient quantity and of proper quality within the country.

The principles of mercantilism shown in the figure clearly show a tendency towards protectionism. Most of these postulates remain relevant in the field of economic policy at the present time.

In the XVIII century . A protectionist trade policy began to take shape in Europe and America, which was aimed at developing national industry and strengthening the economy. At that time, the ideas of mercantilism prevailed, which were aimed at achieving a trade surplus and the accumulation of precious metals (Magnusson, 2015) ^[8]. Although the major continental powers adhered to protectionism, smaller countries often chose liberal approaches.

In the 19th century, during the era of industrialization and the spread of theoretical concepts known as "classical economic theory," there was a shift in priorities in foreign trade. These changes were caused by the popularization of the ideas of free trade, which were designated by the term "free trade".

Adam Smith, the founder of the new economic paradigm, advocated the development of the principles of free trade and competition. However, proponents of protectionism criticized his theory, arguing that it reflected the protectionist policy of Great Britain, which at that time was undergoing an industrial revolution and occupied a dominant position in the production of industrial products.

As a result of Britain's free trade policy, the partner countries gained access to cheap British goods, but at the same time they lost the opportunity to develop their own production. This led to the fact that States could not achieve economic growth and progress.

As an example, historical precedents can be cited, such as the agreements concluded between Great Britain and Portugal in the framework of the Utrecht Peace Treaty of 1713, as well as treaties between Spain and a number of Asian states signed as part of the same peace settlement ^[9].

The principle of non-interference by the state in the economy, implying the superiority of countries with developed industries over others, was beneficial to England, but at the same time it harmed states that sought to develop their economies.

The examples of Spain and Portugal have shown the need to protect national interests and return to the ideas of protectionism. In the economic theory of the 19th century, one of the key issues was the confrontation between protectionism and free trade.

After the end of the Napoleonic military conflicts, which marked the end of the period of wars and revolutions in Europe, significant transformations took place. One of the key aspects of these changes was the removal of many customs barriers, which stimulated the development of free trade and contributed to the restoration of the continent's economic system.

The concepts outlined by Adam Smith in his fundamental work "Research on the Nature and Causes of the Wealth of Nations" ^[1] have been widely recognized and have found practical application in various European countries. In particular, in Prussia, by the middle of the 19th century, free-trade unions began to form, which actively opposed protectionist measures.

For several decades, free-trade ideas have reflected public sentiment in Germany. However, the import of cheap goods from abroad did not contribute to the development of local industrial production.

The situation changed in the 1860s, when Otto von Bismarck came to power. He created a unified German state and implemented an economic policy based on the principles of protectionism. This has led to significant growth of the German economy in key sectors and its establishment as one of the leading sources of innovation for the global economic system.

In this historical period, the process of formation and evolution of the concepts of mercantilism and protectionism is observed. Special attention should be paid to the scientific works of the outstanding German economist Friedrich List (1789-1846), who is considered the founder of the concept of protectionism. He proposed a system of "educational protectionism" ^[10], which is a set of government support measures aimed at stimulating the development of new industries.

Liszt criticized classical political economy for not taking into account national characteristics of economic development. He believed that political economy should be based on experience, take into account the needs of the present and the specifics of each nation, as well as take into account the demands of the future and of all mankind.

F. List argued that removing barriers to the development of national production is advisable only when these barriers begin to hinder development, or when the industry acquires a comparative advantage over other countries.

During the formation of the statehood of the United States of America, protectionist policies played an important role in protecting the domestic market. After the end of the Anglo-American War of 1812-1814, the customs tariff of 1816 was adopted ^[11], which was aimed at protecting domestic industry from foreign competition.

One of the key elements of the protectionist strategy was the Monroe Doctrine of 1823. This document proclaimed the principle of non-interference by the United States and European powers in each other's affairs. For the United States, this meant refusing to interfere in European affairs, and for European states, refusing to interfere in American affairs.

The Monroe Doctrine also established the principle of foreign policy, according to which attempts to further colonize the American continent were regarded as a threat to the national security of the United States.

These measures contributed to the development of the national economy and industry of the United States, as well as the expansion of American capital on the American continent without competition from European powers.

Alexander Hamilton, the first Secretary of the Treasury of the United States, is considered the founder of the ideas of American protectionism. He did not share the view of Thomas Jefferson and Adam Smith, who believed that the United States should remain a raw material appendage of the world's leading economies.

Alexander Hamilton has developed a set of strategic initiatives aimed at supporting and stimulating the development of new industries in the United States of America.

In 1791, he presented a report On Industrial Goods, in which he argued for the need to introduce protectionist measures to protect national industry until it reaches a competitive level in the international arena.

Hamilton proposed a system of measures including customs and tariff regulation, standardization of products, restriction of imports of goods, as well as financial support and other initiatives aimed at supporting and protecting emerging industries. These proposals served as the basis for the development of economic development programs in various countries.

Henry Charles Carey (1793-1879), inspired by the ideas of Friedrich List, in his work "Principles of Social Science" ^[12] (1858) actively promoted the concept of a policy of protectionism in all industries. He believed that the policy of free trade brings economic benefits exclusively to states with competitive advantages in the form of low cost of production of goods. For other countries, such policies may pose an obstacle to economic development. Non-interference of the state in the sphere of foreign economic relations contributes to strengthening the independence of the national economy. The protectionist policy is aimed at stimulating the effective development of production facilities, taking into account geographical factors, ensuring optimal conditions for the sale of products and reducing transportation costs.

In the 19th century, Russian emperors continued to adhere to protectionist principles. Alexander I, despite liberal reforms, supported domestic producers by imposing customs tariffs and import restrictions.

Of particular importance in the context of Russian protectionism is the work of Sergei Yulievich Witte ^[13], a statesman and economist who served as Minister of Finance and Railways of the Russian Empire. His concept of the "Russian national doctrine", aimed at modernizing the country's economy, included elements of protectionist policies.

Witte was a supporter of the ideas of Friedrich List, a German economist who advocated the need for active government intervention in the economic sphere in order to achieve national economic sovereignty. However, Witte adapted these concepts to the specifics of the Russian economy, integrating into them the achievements of his predecessor, Finance Minister Alexander Vyshnegradsky.

Vyshnegradsky developed the foundations of a policy of protectionism by introducing systematic customs tariffs that promote the development of domestic production. Based on these principles, Witte developed and deepened his protectionist strategy, which allowed the Russian Empire to make significant progress in the process of industrialization.

In the context of economic thought at the beginning of the 20th century. Sergei Yulievich Witte, following the approaches of Friedrich List, realized the limitations of protectionist policy as an instrument of state regulation of the economy. He recognized the need for customs barriers as a temporary preventive measure aimed at supporting national producers and stimulating the development of domestic production. However, Witte foresaw that with the strengthening of the national economy, prerequisites would be created for a gradual liberalization of trade and economic policy.

Witte took into account the negative effects of protectionism, expressed in the dominance of higher-cost and lower-quality domestic products in the market compared to imported counterparts. This led to a distortion of the competitive environment and had a negative impact on the development of individual sectors of the economy. Witte sought to avoid repeating such mistakes, which allowed him to develop a balanced and balanced economic strategy.

Thanks to Witte's efforts, at the beginning of the 20th century, it was possible not only to protect the interests of national producers, but also to attract foreign investment and advanced technologies, which contributed to the accelerated socio-economic development of the Russian Empire. Witte managed to create favorable conditions for the integration of the Russian economy into the global economic system, which became a key factor in its modernization.

During the Soviet period, economic policy acquired the character of purposeful protectionism due to the country's isolation from the global economic space. Directive planning, the concentration of financial resources in state ownership and a high degree of centralization of management made it possible to solve strategic tasks. However, this model of economic development led to the loss of the international competitiveness of the Soviet economy.

In the first half of the 20th century, protectionism became widespread, especially during the Great Depression. During the interwar period, the United States maintained a high level of protectionism, but after World War II it gradually switched to a more liberal trade regime.

In 1945-1974, there was a downward trend in protectionist measures in foreign trade. Successive rounds of negotiations under the GATT led to a reduction in tariffs on industrial goods from an average of 40% in 1947 to 6-8% for most industrialized countries before the last round of multilateral trade negotiations (Tokyo Round, 1974-1979).

Despite the significant tariff rate reductions achieved under the GATT, protectionism was revived in the 1970s in new, more widespread and hidden forms. New forms of protectionism include anti-dumping and countervailing measures, technical and health standards, exclusion from public procurement markets, currency and exchange rate manipulation. These new protectionist measures are more ambiguous and make it possible to restrict imports without doing so openly.

One of the most famous proponents of protectionism in the 20th century is Nobel Prize winner Paul Krugman (1953-2008). He argued that the cause of the Great Depression of the 1930s was not a policy of protectionism, but a deflationary macroeconomic policy. Krugman also believed that a way out of the current crisis could be achieved through tax incentives.

According to the hypothesis proposed by Deputy Director of the International Monetary Fund Jonathan D. Ostri (born in 1962), protectionist policies can have positive aspects in terms of macroeconomic benefits. Protectionism can lead to the creation of new jobs, increased production and an improved trade balance.

In the fundamental work of Harry Gordon Johnson (1923-1977), published in 1954, the concept of "ruin the neighbor" was first presented as a justification for tariff increases ^[14]. In this work, it was demonstrated that in a trade war, a country can benefit by setting the optimal tariff, even if other states respond in kind.

Subsequent research developed and systematized Johnson's ideas based on more general assumptions, such as imperfect competition (Brander and Spencer, 1984^[15]; Eaton and Grossman, 1986^[16]; Broda et al., 2008^[17]), specific tariffs (Horwell, 1966 ^[18]) and quotas (Tower, 1975 ^[19]).

In the 21st century, there is a tendency to increase protectionism in international economic relations. In the face of uncertainty, there is a resurgence of national interests and nationalism in a world undergoing serious upheaval. There is a redistribution of economic power, for example, Ian Bremmer calls it the "Group 0" ^[20] in contrast to the G20 or G7 multilateral institutions.

The global economic crisis of 2008 served as a catalyst that initiated the transformation of the foreign economic strategy from a liberal model to a protectionist one. This event marked the initial stage in the development of protectionism in the context of the 21st century, characterized by complex changes in international economic policy. The crisis of 2008, caused by systemic imbalances in the global financial system, led to a significant deterioration in economic conditions, which, in turn, contributed to a revision of traditional approaches to regulating foreign economic activity. In the face of increased volatility and uncertainty, States began to actively implement protective measures to stabilize national economies, which resulted in increased protectionist tendencies.

In 2009, the international community adopted 184 measures aimed at overcoming the global economic crisis and its consequences. A significant part of these measures, classified as protectionist, were aimed at supporting national production and stimulating the domestic market. These measures included the creation of favorable conditions for the activities of national companies, which strengthened their competitiveness in both domestic and foreign markets ^[21].

More than half of all protectionist measures taken were related to government support for local producers and protection against unfair competition. In particular, anti-dumping and countervailing duties were applied, which prevented dumping practices and protected national companies from unfair competition from foreign market participants.

Protective measures accounted for about a quarter of the total number of measures taken. Among them, tariff restrictions, including an increase in import duties, amounted to 14%, and non—tariff measures, such as stricter sanitary standards and the imposition of an import embargo, amounted to 10%. These measures were aimed at reducing dependence on imports and stimulating the development of domestic industry.

In 2009, the largest number of protectionist measures were taken by the European Union (90 measures), the Russian Federation (37 measures) and Argentina (21 measures). A particularly significant number of barriers were installed for goods from China. This indicates the desire of these countries to protect their national economic interests and support the domestic market in the face of global economic instability.

At the end of the XX - beginning of the XXI century, developing countries experienced significant economic growth, which led to the formation of a number of promising economies belonging to the BRICS group. It was predicted that by the middle of the 21st century, these States would occupy leading positions in the global economic system. In particular, China's economy has demonstrated rapid development, which has had a significant impact on the dynamics of global trade and has led to a significant increase in the costs associated with the principles of free trade for the United States of America.

The increase in imports in the US trade balance led to negative consequences for domestic production and employment, which, in turn, contributed to increased social tensions. This trend became one of the key factors influencing the results of the 2016 US presidential election, where Donald Trump, who positions himself as a defender of national interests and an opponent of globalization processes, received wide support.

During the presidency of Donald Trump, the Government of the United States of America (2017-2021) implemented a number of strategic initiatives aimed at a protectionist policy towards the domestic market. These measures have manifested themselves in several key aspects:

1. The US withdrawal from the Trans-Pacific Partnership (TPP) and a significant deterioration in trade and economic relations with the People's Republic of China.
2. The revision of the terms of the North American Free Trade Agreement (NAFTA), which led to its transformation and the entry into force of the new agreement between the United States, Mexico and Canada (USMCA) ^[22].

These actions can be considered as an analogue of the economic policy pursued by the Ronald Reagan administration in the 1980s, which was also focused on supporting national producers in the context of globalization and economic growth in Europe and Asia.

It should be emphasized that Trump's strategy to protect the domestic market included not only trade measures, but also a wide range of economic initiatives aimed at stimulating national production and reducing dependence on external factors.

In the context of the growing instability of modern economic development and the rapid change of technological structures in the global economic arena, protectionist tendencies are once again increasing. These changes affect not only technology, but also politics, social relations and institutions, which leads to new challenges, threats and risks to the economic security of individual states and are caused by the following factors:

1. The weakening of the US position in the distribution of economic power on the world stage. For the first time in recent centuries, the economic supremacy of the Western world is being threatened by the growing power of Asia, especially China and India. This leads to the formation of a multipolar global economy. As a result, agreements such as the Bretton Woods are faced with alternative initiatives promoted by China, which many European countries are joining.
2. New technologies (the Fourth Industrial Revolution) and economic policy. The introduction of new technologies leads to job cuts, which causes social unrest. The creation of barriers to access to foreign goods in the markets of countries such as the United States, Great Britain and France is directly related to the mass dismissal of workers in the manufacturing industry of countries with trade deficits. China, South Korea, Malaysia and other Asian countries are pursuing a policy of export-led growth, which creates new employment opportunities.
3. Unfair corporate practices, tax and fee evasion (including export taxes), as well as the hostile attitude of government agencies. These factors contribute to the formation of a negative attitude towards globalization. The "new globalism", which serves exclusively the interests of corporations, often leads to subordination of workers, consumers, public and social interests, as well as profits. This is considered one of the biggest changes in the world in the last 350 years and inevitably causes protectionist sentiments.
4. The influence of external (financial) markets on the decisions of national governments. It is widely believed that foreign markets have excessive power and influence the decisions of national governments. This issue is particularly sensitive because it affects the legitimacy of those who are authorized to manage public affairs.
5. Rejection of the need for supranational institutions and concerns about EU membership. Many nationalist parties reject the need for supranational institutions and argue that EU membership undermines national sovereignty and freedom. This led to the 2016 UK referendum, which became the starting point for the Brexit process.
6. Creation of a new type of decision-making system. In the context of distrust of supranational institutions and national parliaments, attempts are being made to create a new type of decision-making system based on nationalist and economic arguments typical of the neoliberal market.

In addition to all these universal challenges and threats to all states, the most extensive sanctions imposed by other states in the entire history of international economic relations were imposed on the Russian Federation in 2022. In the context of external economic aggression and the materialization of a number of threats, changing technological patterns, the issues of ensuring self-sufficient sustainable functioning of the national economy of the Russian Federation are becoming relevant, which can be ensured through the implementation of protectionist policy instruments.

In early 2025, President of the United States of America Donald Trump initiated large-scale reforms in the field of tariff regulation, announcing the transition to a new stage in the implementation of the concept of economic self-sufficiency of the state. However, behind these statements about "freedom" lies a strategic course towards aggressive protectionism, involving a revision of the rules of international trade in the interests of the United States.

The concept of American protectionism is aimed at restoring and activating industrial production in the United States of America.

In recent years, there has been a tendency to move production facilities outside the country, in particular to China, India and Mexico, where wages are lower. This process helped to reduce the cost of production, but had a negative impact on the economic stability of the United States.

The Government of the United States of America considers the introduction of high duties on imported goods as an effective way to stimulate the return of production to the national territory.

Conclusions

The policy of protectionism has deep historical roots related to economic nationalism and the desire for enrichment. While free trade has spread throughout the world, protectionism remains an important element of international economic relations. Its importance varies depending on the economic interests and needs of the country.

An analysis of the evolution of mercantilist ideas suggests a change in emphasis in protectionist policy from the use of monetary instruments to instruments that encourage domestic production and exports, which can be correlated with later concepts of defensive and offensive protectionism.

A study of the evolution of protectionism policy shows that it is actively applied in conditions of economic instability. However, the transition to trade liberalization occurs when the economic situation stabilizes and the level of development increases. At the same time, free trade can be accompanied by the use of hidden forms of protectionism.

In conditions of economic and geopolitical instability and uncertainty, many States face the need to achieve a balance between ensuring the stability of the national economy and protecting the interests of national companies. In this situation, countries apply protectionist measures to minimize the impact of foreign competition on domestic market mechanisms.

Based on the analysis of the historical stages of the formation and development of the policy of protectionism, the following key points have been identified that make up the scientific novelty of the study:

1. Protectionism is a strategically sound economic policy aimed at supporting and developing the national economy in the face of increasing economic and geopolitical instability, changing technological patterns accompanied by political, social and institutional changes, and the emergence of new challenges, threats and risks to the economic security of States.
2. Government strategies to stimulate economic growth and enhance national competitiveness should include the integrated use of protectionist instruments combined with liberalizing measures. The choice of specific instruments depends on the structure of the national economy, the specifics of export potential, as well as the dynamics of competitive relations in international markets.
3. Developed economic systems, faced with the loss of competitive advantages due to the accelerated technological development of developing countries, are increasingly resorting to protectionist measures. This is due to the need to adapt to the new conditions of global competition and maintain a dominant position in the global market.

Protectionist policy should be defined not as a means of supporting emerging industries, but as a modern mechanism aimed at ensuring the sustainable functioning and development of the national economy in the face of increasing economic and geopolitical uncertainty.

The implementation of the modern policy of protectionism should be aimed at achieving the following goals:

1. Providing conditions for the formation and strengthening of national competitiveness through the stimulation of domestic production and innovation.
2. The use of protective mechanisms to maintain the current level of competitiveness and prevent the strengthening of the competitive positions of other national economies, which contributes to maintaining strategic leadership in the international arena.

To ensure the sustainable development of new sectors of the national economy, it is necessary to apply comprehensive government regulatory measures, including support and protectionist strategies aimed at protecting against international competition. These measures are key elements of a protectionist policy aimed at stimulating the formation and sustainable growth of new manufacturing industries.

The policy of protectionism in the modern world should act as a key tool for ensuring national economic sovereignty, especially in the context of the transformation of the system of international economic and political relations and the transition to a new technological order. This approach will strengthen the economic independence of countries, reduce their vulnerability to external shocks, and create conditions for sustainable development in the face of global instability.

Thanks

The article was prepared as part of the state assignment for 2025 No. 075-03-2025-526 "Conceptual approaches to the formation of mechanisms for national economic sovereignty of the Russian Federation in the context of unprecedented global challenges."