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🌐 Entity Trade war

Trade war

Economic conflict using tariffs or other trade barriers

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4 news mentions · 👍 0 likes · 👎 0 dislikes

📌 Topics

  • International Trade (4)
  • Economics (2)
  • U.S. Politics (1)
  • Macroeconomics (1)
  • Monetary Policy (1)
  • Infrastructure (1)
  • Diplomacy (1)
  • Geopolitics (1)

🏷️ Keywords

Trump tariffs (2) · Trade war (2) · Canada trade (1) · House of Representatives (1) · Republican dissent (1) · Steel and aluminum tariffs (1) · GOP leadership (1) · European Central Bank (1) · Import Tariffs (1) · Eurozone Inflation (1) · Trade War (1) · Industrial Production (1) · Economic Growth (1) · United States Trade (1) · Donald Trump (1) · Justin Trudeau (1) · Gordie Howe Bridge (1) · Tariffs (1) · US-Canada relations (1) · Detroit (1)

📖 Key Information

# Trade War A **trade war** is an economic conflict typically resulting from extreme protectionism. It occurs when sovereign states implement or escalate tariffs and other trade barriers against one another as a component of their commercial policies. These actions are generally retaliatory, functioning as a response to perceived or actual trade restrictions imposed by an opposing party. ## Mechanisms and Classification The nature of the conflict is defined by the specific economic instruments deployed: * **Tariff Wars:** When the conflict is conducted exclusively through the mechanism of import duties, it is alternatively referred to as a *customs war*, *toll war*, or *tariff war*. In these scenarios, states engage in a cycle of reciprocal tariff increases. * **Protectionist Symmetry:** A conflict is strictly classified as a trade war only when the competitive protectionist measures between states are of the same type. * **Exclusions:** Actions taken to counter **dumping** (the export of goods at prices lower than the home market) are generally distinguished from trade wars, as anti-dumping measures are regulated under specific legal frameworks rather than purely protectionist aggression. ## Dynamics A trade war typically evolves through a cycle of reprisal: 1. **Initiation:** One state implements a trade barrier to protect domestic industries or address economic grievances. 2. **Retaliation:** The affected state responds by increasing its own tariffs or implementing non-tariff barriers on the first state’s exports. 3. **Escalation:** The continued exchange of restrictive measures leads to heightened economic tension and potential disruptions in global supply chains.

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