Why might consumers experience increased prices due to trade restrictions?

Consumers may experience increased prices due to reduced availability of foreign goods. Trade restrictions, such as tariffs, quotas, or import bans, limit the amount of foreign goods that can enter a market. When foreign goods become less available, competition among suppliers can diminish, leading to higher prices for the limited domestic goods that are available. Without robust competition from international markets, domestic suppliers may not have the same incentive to keep prices low, potentially resulting in increased costs for consumers.

In the context of trade, when goods are restricted from entering a market, it constrains consumer choices, leading to a scenario where consumers may have to pay more for the less varied selection of goods.