ELI5: Explain Like I'm 5

Trade barrier

Hi there! So, imagine you and your friend both have a bunch of toys. You both want to share your toys with each other, but you live in different houses. There's a big fence between your houses that you can't climb over or go through. This fence is called a trade barrier - it's something that stops things from going back and forth between two places.

Now, let's say you want to trade one of your toys with your friend. but because of the trade barrier, it's really hard to get it to them. You might have to go all the way around the fence, which takes a lot of time and effort, or you might not be able to do it at all. This can make it really hard to trade things with your friend, even though you both want to.

In the real world, countries sometimes create trade barriers between them. This might be tariffs (which are basically taxes on goods coming from another country), quotas (which are limits on how much of a certain good can be imported), or other rules and regulations that make it harder for goods to cross the border. Just like the fence in our example, these barriers create obstacles for trade between two countries.

Sometimes, countries put up trade barriers to try and protect their own industries. They might want to make sure that their own companies can sell their goods without too much competition from other countries. However, this can also make it harder for people in other countries to buy those goods, or to sell their own goods to the country with the barriers.

Overall, trade barriers can make it harder for people and countries to trade with each other. When there are fewer trade barriers, it can be easier for goods to move back and forth, which can help people in both countries get what they need and want.