This paper examines the implications of new goods on the welfare costs of trade restrictions, challenging the traditional economic assumption that the set of goods in an economy is fixed. The author argues that allowing for the introduction of new goods significantly increases the welfare losses from trade restrictions, potentially up to twice the tariff rate. This challenges the conventional view that trade restrictions have minimal welfare costs. The paper highlights the importance of considering fixed costs in the analysis of new goods, which are often overlooked in traditional economic models. It also discusses the philosophical resistance to the idea that new things can happen at any time, which has hindered the exploration of new goods in economic theory. The paper emphasizes the need to incorporate fixed costs and the potential for new goods in economic analysis, as they play a crucial role in understanding the dynamics of growth and trade. The author also notes that the traditional argument for free trade relies on perfect competition, which is not sustainable when fixed costs are present. Therefore, fixed costs have been used to justify various forms of government intervention, including trade restrictions. However, the paper argues that considering fixed costs actually strengthens the case for free trade. The paper also discusses the implications of new goods on economic analysis, emphasizing the importance of considering the potential for new goods in understanding economic growth and trade. The author concludes that the presence of new goods significantly affects the welfare costs of trade restrictions and that economic analysis must account for this in order to accurately assess the impact of trade policies.This paper examines the implications of new goods on the welfare costs of trade restrictions, challenging the traditional economic assumption that the set of goods in an economy is fixed. The author argues that allowing for the introduction of new goods significantly increases the welfare losses from trade restrictions, potentially up to twice the tariff rate. This challenges the conventional view that trade restrictions have minimal welfare costs. The paper highlights the importance of considering fixed costs in the analysis of new goods, which are often overlooked in traditional economic models. It also discusses the philosophical resistance to the idea that new things can happen at any time, which has hindered the exploration of new goods in economic theory. The paper emphasizes the need to incorporate fixed costs and the potential for new goods in economic analysis, as they play a crucial role in understanding the dynamics of growth and trade. The author also notes that the traditional argument for free trade relies on perfect competition, which is not sustainable when fixed costs are present. Therefore, fixed costs have been used to justify various forms of government intervention, including trade restrictions. However, the paper argues that considering fixed costs actually strengthens the case for free trade. The paper also discusses the implications of new goods on economic analysis, emphasizing the importance of considering the potential for new goods in understanding economic growth and trade. The author concludes that the presence of new goods significantly affects the welfare costs of trade restrictions and that economic analysis must account for this in order to accurately assess the impact of trade policies.