new industries need time and practice to become efficient producers
- tariffs and other protectionist policies are defended on the grounds that they protect new industries in the early stages of their development
- a tariff shields a young industry from the competition of its more mature rivals
- after the infant industry acquires the ability to produce goods efficiently and at a competitive price, the tariff can be eliminated because the industry is able to compete
- problems: a protected infant industry lacks incentive to become more efficient and competitive; once an industry is given tariff protection, it is difficult to take the protection away