Final answer:
Classical liberal economics or free trade is a theory that supports the idea of markets operating best when free from government intervention, making proponents likely to oppose taxing imports. By reducing trade barriers, consumers can benefit from lower prices and higher quality goods, although this can present challenges to less competitive domestic industries. A domestic tax on critical resources can manage national security interests without distorting trade.
Step-by-step explanation:
An economic theory that would make a person oppose taxing imports is classical liberal economics or free trade. Classical economics generally supports the idea that markets function best without excessive government intervention. Proponents of free trade argue that tariffs distort markets, inhibit competition, and ultimately harm consumers by increasing prices and reducing choices. Instances of historical mercantilism and modern industry lobbying for tariffs demonstrate how protectionist policies can serve corporate rather than consumer interests.
In contrast to mercantilism, which involved heavy government intervention in the economy, a free trade approach encourages competition and allows industries to develop based on their comparative advantage. For example, if a country removes barriers to sugar imports, domestic industries that are less efficient would face pressure to improve or exit the market, eventually benefiting consumers with lower prices and higher quality products, though this transition could be difficult for domestic workers and producers in the short term.
A tax on domestic consumption, instead of barriers to imports, can sometimes be used as a means to manage resources critical to national security without distorting international trade. Such a tax encourages efficient usage of the resources while still allowing for the benefits of international trade.