Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Tariffs and import quotas make foreign goods more expensive and less competitive, which may increase demand for domestic goods and result in increased domestic employment. However, when other countries retaliate with their own tariffs and import quotas on goods from the country that initiated these policies, it can reduce exports and lead to job losses in export industries. This is known as the "trade retaliation effect."