Trade War

A trade war is an economic conflict between countries. As a result, the two countries imposed trade protectionist policies against each other in the form of trade barriers.

Trade wars are fought using trade barriers that can be presented in a variety of ways. Although these barriers can be limited to tariffs, import quotas, domestic subsidies, currency devaluations, and embargos, the result is usually the same. He made the products of the country more expensive. If one country imposes trade barriers, the other will retaliate with another policy. This creates the concept of “war”.

Trade wars often begin when the government of a country believes that another country is engaging in unfair trade practices that are harming the market of the first country. In an attempt to protect their domestic industry or create jobs, they may impose trade barriers, such as tariffs on key products imported from other countries. Other countries could counter-attack and this title war would turn into a trade war.