Examples of Trade Wars
Few examples of trade wars are mentioned below:
- U.S.-China Trade War (2018-present): Initiated by the United States, this trade war involves tariffs on hundreds of billions of dollars worth of goods between the two countries. The U.S. accuses China of unfair trade practices, intellectual property theft, and imposing barriers to entry for American companies.
- U.S.-EU Trade War (2018-present): The United States and the European Union have engaged in a trade dispute over tariffs on various products, including steel, aluminum, and agricultural goods. The disagreement worsened with the imposition of tariffs on European steel and aluminum by the U.S., followed by retaliatory tariffs from the EU.
- Japan-South Korea Trade Dispute (2019-present): This trade dispute originated from historical grievances between Japan and South Korea, leading to Japan imposing restrictions on the export of key materials used in the semiconductor and display industries to South Korea.
- Australia-China Trade Tensions (2020-present): Trade tensions between Australia and China increased after Australia called for an independent inquiry into the origins of the COVID-19 pandemic, which China viewed as interference. As a result, China imposed tariffs and other trade barriers on various Australian exports, including barley, wine, and coal.
- U.S.-Mexico Trade War (2019-present): The United States threatened and imposed tariffs on imports from Mexico as part of efforts to address immigration issues, particularly illegal immigration across the U.S.-Mexico border. This trade dispute was primarily aimed at pressuring Mexico to enhance its border security measures.
Trade Wars
Trade Wars: A trade war is an international conflict involving protectionist measures between countries over goods and services. A trade war may start when a country applies import restrictions or increases import tariffs in opposition to another. For example, when then-President Donald Trump slapped several tariffs on Chinese imports, the U.S.-China trade war broke out in the middle of 2018. China increased tariffs on American goods in retaliation.
Trade wars can start when one country thinks another is not being fair in trade. Groups within a country, like trade unions or industry supporters, may push leaders to make products from other countries less appealing, leading to a trade war. Trade wars may be harmful to both countries’ industries and consumers. They may spread to impact other industries as well.
In this article, we will look into the meaning, history, impacts, list, examples, advantages, and disadvantages of Trade Wars in detail.
Table of Content
- What is a Trade War?
- History of Trade Wars
- List of Trade Wars
- How are Trade Wars Fought?
- Impacts of a Trade War on the Economy
- Examples of Trade Wars
- Impact of US-China Trade War on India
- Advantages of Trade Wars
- Disadvantages of Trade Wars