Trade War

A Trade War occurs when countries impose tariffs or other trade barriers on each other, leading to increased costs and disruptions in global trade.

Examples:

• The U.S. and China imposed tariffs on each other’s goods in 2018.
• The European Union and the U.S. engaged in a tariff dispute over steel and aluminum in 2018.
• India increased tariffs on American goods in response to U.S. tariffs in 2019.

Key impacts:

• Higher consumer prices due to tariffs.
• Disrupted supply chains as goods become expensive.
• Economic slowdowns in affected countries.

Affected industries:

• Agriculture (soybeans, dairy)
• Manufacturing (automobiles, electronics)
• Technology (semiconductors, telecommunications equipment)