History of Trade Wars
Trade wars have existed for centuries; the British Empire and colonial nations are two examples. To defend American farmers, the Smoot-Hawley Tariff Act of 1930 raised import charges, which provoked retaliation from other countries. President Roosevelt signed the Reciprocal Trade Agreements Act, which weakened trade barriers during the Great Depression. In 2018, Trump levied tariffs on a range of products, affecting Mexico, China, the European Union, and Canada.
Also, interim tariffs on US steel and other products were imposed by the EU and Canada. Tariffs on Chinese imports affected around $200 billion in imports by May 2019. China hit back, placing heavy tariffs on goods from the United States. The expenses of these tariffs are covered by US importers, as demonstrated by data from the International Monetary Fund, which brings up prices.
Also Read: Role of Trade Union in India
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