What is a Trade War?
An economic conflict between nations is called a trade war. This leads to the imposition of trade barriers by both countries as a kind of trade protectionist measure. Several measures, including import quotas, tariffs, embargos, domestic subsidies, and currency devaluation, may be used to create these obstacles. Every time one nation creates a trade barrier, the other nation will respond by enacting a different policy.
Trade wars frequently begin because a government in one nation feels that another is unfairly damaging its markets through trade practices. They might put in place a trade restriction, such as a tariff on an essential good imported from another nation, to protect their home sector or generate employment. This tit-for-tat conflict could turn into a trade war if the other nation retaliates.
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