Trade War
A trade war occurs when countries impose tariffs or other trade barriers on each other to protect their domestic industries. This often leads to increased prices for consumers and can disrupt global supply chains. Countries may engage in this conflict to gain a competitive advantage or retaliate against perceived unfair trade practices.
The effects of a trade war can be widespread, impacting not only the countries involved but also their trading partners. For example, a trade war between the United States and China can affect global markets, leading to uncertainty and economic slowdown in various regions.