A trade war is a situation in which countries impose tariffs, quotas, export restrictions or other trade barriers against each other, usually in retaliation for the other country’s protectionist measures.
Simple chain
Country A imposes tariff on B
↓
B’s exports become expensive
↓
B retaliates with tariffs on A
↓
A retaliates again
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Trade war
1. Why do countries start a trade war?
Economic reasons
• Protect domestic industries
• Reduce trade deficit
• Protect employment
• Counter dumping
• Respond to subsidies
• Promote domestic manufacturing
Strategic/geopolitical reasons
• National security
• Reduce dependence on a rival
• Technology competition
• Supply-chain security
• Use trade policy as diplomatic leverage
August 26, 2026 5.7K 9
