A Restriction on Trade Wastes Resources and Creates Lost Gains from Trade (Deadweight Loss) With free trade, domestic production of sugar is 0. When imports are restricted, the domestic industry expands to 20 billion pounds, but U.S. costs are above world costs so the expansion of the domestic industry creates wasted resources (area B). At the higher price of sugar, less sugar is bought so the import restriction also creates lost gains from trade (area C, also called the deadweight loss).