How does economic nationalism support tariffs and government subsidies?

Economic nationalism is a protectionist ideology that prioritizes the national economy, operating on the principle that a state cannot remain powerful without a strong domestic industrial base. To achieve this, economic nationalists advocate for state intervention to shield domestic producers from foreign competition, viewing the economy as a tool to serve the nation's interests.12

Supporting Domestic Industry

Economic nationalism supports the use of tariffs and government subsidies as essential instruments to preserve national strength. These policies function in the following ways:2

• Tariffs: By imposing taxes on foreign goods, states make imports more expensive, which encourages consumers to purchase domestic alternatives. This protection is often justified by the "infant-industry argument," which suggests that emerging domestic sectors require temporary shielding from established foreign competitors until they reach maturity and international competitiveness.345
• Government Subsidies: These are direct or indirect payments, concessions, or privileges granted to domestic firms to promote public objectives. Subsidies allow governments to support key industries—such as mining, agriculture, or transportation—without necessarily raising consumer prices, as tariffs often do. They are frequently used to mitigate the effects of market forces and ensure that vital industries remain viable even when they cannot compete on their own.65

While these measures aim to protect jobs and foster self-sufficiency, they are often criticized for distorting markets, potentially encouraging inefficiency, and risking retaliatory "beggar-thy-neighbor" trade wars that can ultimately hinder global economic growth.5634