A trade war is a situation in which countries impose tariffs or other trade barriers on each other in response to trade policies they find unfavorable. This escalation often begins with one country imposing tariffs on imported goods, prompting retaliatory measures from another country. Trade wars can lead to increased costs for consumers, disrupted supply chains, and reduced economic growth. They are typically fueled by disputes over trade imbalances, protectionist policies, and national interests, affecting global trade relations and international economies. The outcome of a trade war can reshape industries, alter competitive advantages, and change the landscape of international trade.
Trump's 25% tariff on Canadian and Mexican products marks a significant shift in North American trade policy. Retaliatory tariffs from Mexico and Canada indicate potential for escalating trade tensions. The…