Trade War and its effects

What is Trade War?

It’s a feud between two or more nations regarding trade tariffs on each other. The feud usually arises when the nations involved are trying to improve imports or exports for their own country. Trade wars have the potential of increasing the costs of certain imports if the nations involved refuse to make an agreement.

What are the effects of the Trade War?

On a positive note, it will raise demand for local goods, the employment rate in the country will grow. Narrows trade deficits and penalize the nation for unethical trading.

On a negative side, a slowdown in the country’s economic growth, Price increase and shortage of products, pay more for raw materials and earn less profit. Finally, there will be a rise in inflation.

Previous Trade Wars:

Anglo-Dutch Wars(1652–1784)
Opium Wars(1839–1860)
Banana Wars(1898–1934)
Smoot–Hawley Tariff Act(1930), a United States Act implementing protectionist trade policies
Anglo-Irish Trade War(1932–1938)
Trade war over genetically modified food(2010–2011)
Trump tariffs(2018)
China–United States trade war (2018–present)

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