Three plausible answers:
1. Remove the barriers. Drop import and export restrictions, drop punitive tariffs, reduce taxes; at the same time, make restrictive DRM and equivalents (copyright controlling imports, in the instant case) illegal. This will reduce production costs and reduce selling prices. Overall, standard of living will rise slightly where production costs are low and sink more dramatically where production was formerly located. Eventually, the markets should reallocate themselves efficiently, but it can be a long and painful process and lots of people will get hurt.
2. Enforce all the barriers more rigorously. Apply import tariffs on everything, support local producers by mandating price floors, don't allow reimportation at all. Smuggling becomes much more lucrative, as does the black market. Advances in miniaturization mean that we can track fractional ownership of everything; instead of buying a coffee machine, you rent one, along with the mugs and spoons. (Clearly we need to reduce frictional costs immensely, or else the inertia drags us to a halt.)
3. We continue to muddle through, with incremental improvements when we (as a society, not we as hackers) recognize the need. Markets get regulated, but not very well or efficiently. Perhaps biases toward the established parties are corrected, perhaps not. If a sufficiently large proportion of the population is enraged, revolution ensues and all bets are off. Otherwise, business as usual.