Trade War

Trade wars may be instigated when one country perceives another country's trading practices to be unfair



Trade War

  • A negative side effect of protectionism that occurs when Country A raises tariffs on Country B's imports in retaliation for Country B raising tarrifs on Country A's imports.

  • Trade wars may be instigated when one country perceives another country's trading practices to be unfair.
  • When domestic trade unions pressure politicians to make imported goods less attractive to consumers.
  • Trade wars are also a result of a misunderstanding of the widespread benefits of free trade.

Keywords:

  • Trade wars