Final answer:
Yes, US sugar imports are limited by an import quota system. This protectionism leads to higher domestic prices for sugar and safeguards local industries but can limit trade and lower prices in exporting countries such as Brazil. A strict quota can lead to reduced international trade and a return to pre-trade price levels.
Step-by-step explanation:
Yes, US sugar imports are restricted by way of an import quota. For example, if the United States passed a sugar import quota of seven tons, they would import no more than that amount, which restricts countries like Brazil to export no more than seven tons of sugar to the United States. This kind of protectionism can lead to an increase in the price of sugar domestically.
Protectionism, such as import quotas, safeguards domestic industries by limiting the quantity of goods that can be imported. In the sugar industry, such quotas can result in higher domestic sugar production, more jobs, and higher prices for American sugar farmers. Conversely, the impact on Brazil, in this hypothetical scenario, would mean a lower price for sugar within its own market if it's restricted to export only the aforementioned quota.
Different forms of protectionism, like high tariffs or a quota set to zero, could lead to a significant reduction or elimination of sugar trade between countries, pushing the prices back to levels before international trade was perceived.